In his latest and final market commentary, Bill Miller discusses why investors should forget headlines and focus on stocks. Here’s an excerpt from the commentary:
When I am asked what I worry about in the market, the answer usually is “nothing”, because everyone else in the market seems to spend an inordinate amount of time worrying, and so all of the relevant worries seem to be covered. My worries won’t have any impact except to detract from something much more useful, which is trying to make good long-term investment decisions.
Today’s worries include, but are not limited to, China’s regulatory actions, high and rising fuel and food prices, labor shortages, inflation or stagflation, the effect of Federal Reserve tapering, disrupted supply chains, potential default due the debt limit standoff and the ongoing dis-function and polarization in Washington. These are legitimate concerns and seem adequately reflected in the market, particularly so when stocks corrected in September. One thing I am pretty confident of is that twelve months from now those worries will have been replaced by a new set of worries.
In the meantime, stocks are entering their strongest seasonal period. The major US indices are all up double digits, so the bull market continues. As in most markets, there are areas of over-valuation and of under-valuation, with the bulk of shares appearing to hover in the area of fair value relative to their prospects. We, of course, continue to focus on securities where the opportunities for long term excess returns appear greatest.
You can read the entire commentary here:
Bill Miller: Q3 2021 Market Commentary
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