japan
Sam Zell says sell
May 10, 2013: 9:02 AM ETLegendary investor says stock market is in state of "euphoria," while economy is still in the dumps.
Sam Zell
FORTUNE -- At least one notable investor thinks we may be in bubble trouble again.
Sam Zell on Thursday at the SALT hedge fund conference in Las Vegas said stocks are due for a fall. The legendary real estate investor thinks the market is out of touch with what is really going on in the economy.
"Right now you are buying at an all-time high," says Zell. "And there are times when stocks hit a high, and then go higher, but that's when you have a good economy."
Despite dropping modestly on Thursday, stocks have been on a tear lately. The Dow Jones industrial average (INDU) is above 15,000 for the first time, and the market is up 14% in 2013, which puts it on pace to have its best year in more than a decade.
MORE: The market 'bubble' you've never heard of
By contrast, Zell said the companies he runs and looks at are still struggling to increase sales. Beyond the weak U.S. economy, Zell said he was worried about problems in the Middle East and recent aggressive efforts by the Bank of Japan to stimulate that country's economy.
"That's not QE," says Zell, referring to the nickname of Federal Reserve's recent bond buying effort, quantitative easing. "I don't know what you call it."
Zell's comments were a break from the mostly upbeat tone at the SALT hedge fund conference being held his week in Las Vegas. Leon Cooperman, who runs hedge fund firm Omega Advisors, says based on corporate earnings, which have also risen dramatically, stocks don't look expensive. Cooperman says the S&P 500 (SPX) should be trading between 1500 and 1700. It's at 1626, so Cooperman says that means stocks are fairly valued, not in a bubble. What's more, Cooperman said, individual investors are just coming back to the stock market after a steady flow out for the past five years. Cooperman said that's not going to stop anytime soon.
MORE: Stocks are too expensive
For his part, Zell says it's not only stocks that may be rising faster than they should. Zell says large investors going around the country buying up individual houses and pushing up prices might end up with a losing bet. Private equity firm Blackstone (BX), for example, has reportedly spent $4 billion to acquire 25,000 homes.
Zell, whose company owns apartment buildings, said taking care of individual houses is harder than it looks. Still, Zell said the stock market is where prices look obviously out of whack.
"The current euphoria in the stock market will be adjusted," says Zell. "And I hope that's all that happens."
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Why Dan Loeb loves Japan
Hedge fund manager Dan Loeb says Japanese stocks are cheap.
FORTUNE -- Dan Loeb, the $11 billion hedge fund titan, says he is betting on a Japanese rebound.
Speaking on Thursday at the annual SALT hedge fund conference, Loeb named Japan as the investment he is most excited about right now.
"We are extremely focused on Japan," says Loeb, who runs the Third Point hedge fund.
In a recent investing letter, Loeb mentioned that MORE
Stephen Gandel, senior editor - May 9, 2013 5:01 PM ET -
3 reasons why it's different for Japan this time
Japan has repeatedly tried to revive its economy, but investors might just buy it this time around.
FORTUNE – Japan has struggled to keep its standing as the world's third-largest economy. For the past 15 years, it has been plagued by falling prices, making it the only major economy to undergo prolonged deflation since the Great Depression. Over the years, the government has tried to reboot the economy to what it once MORE
Nin-Hai Tseng, Writer - Apr 11, 2013 10:56 AM ET -
Finding the beauty in ugly markets
Even in tough spots like Europe and Japan, MFS International Value Fund's Barnaby Wiener sees stocks that he thinks can deliver.
By Mina Kimes, writer
FORTUNE -- Markets across the globe are in a state of tumult, but Barnaby Wiener, who runs the $5.8 billion MFS International Value Fund (MINIX), isn't breaking a sweat. Wiener (pronounced wee-ner) is a long-term investor who picks stocks on an individual basis, and he thinks the MORE
Sep 13, 2012 5:00 AM ETPosted in: Barnaby Weiner, europe, European stocks, fund managers, japan, MFS International Value Fund, stocks -
Is Japan next?
Japan's debt levels have ballooned to a level that makes Greece look like a steward of capital. Wall Street has noticed, and it's placing its bets.
By Cyrus Sanati, contributor
FORTUNE -- With the European sovereign debt imbroglio taking a breather for the moment, there is increasing concern on Wall Street that Japan could be the next major flashpoint in the ongoing global financial crisis. It appears that the country's economic reckoning, some 20 years MORE
Feb 16, 2012 5:00 AM ET -
Moody's shows U.S. turning Japanese
One of these days the United States will lose its triple-A rating, and the bond market won't blow up. But don't kid yourself into thinking that's good news.
To the contrary, the tame reaction to Wednesday's downgrade warning from Moody's shows that the United States is already much further down the road to a Japanese-style quagmire than most of us might care to admit.
The Japan comparison sounds like a stretch. Yes, there MORE
Colin Barr - Jul 14, 2011 2:43 PM ET -
Record year for natural disaster losses
Call this the year of catastrophes – and not just the financial kind that the guys in Washington and Brussels seem resolved to lead us into.
Halfway through, this year is already the costliest on record for natural catastrophes, insurer Munich Re said Tuesday in its first-half review. Losses hit $265 billion in the first six months of 2011 – which exceeds the $220 billion in losses in the biggest previous MORE
Colin Barr - Jul 12, 2011 11:23 AM ET -
Japan's nuclear crisis won't derail world energy markets
Even if the world scales back on development of nuclear power, it won't have a sweeping impact on energy prices. The reality is that nuclear is still small.
As crews in Japan scramble to contain what has been called the world's worst nuclear crisis in 25 years, governments around the world are questioning the safety of nuclear power. Germany temporarily shut down its older nuclear power stations, while China has postponed MORE
Nin-Hai Tseng, Writer - Mar 25, 2011 12:11 PM ET -
How JPMorgan landed the AT&T deal
JPMorgan's chief banker Jes Staley talks about the AT&T-T-Mobile deal, how the firm responded to the Japan crisis, and why Facebook's valuation might be justified.
FORTUNE - With its role advising AT&T on its proposed $39 billion purchase of T-Mobile, JPMorgan Chase has solidified its lead atop the mergers and acquisitions league tables in 2011. There's been a lot of talk about the $20 billion bridge loan that JPMorgan Chase threw MORE
Duff McDonald, Contributing Editor - Mar 24, 2011 1:52 PM ET -
Why the yen needs to be restrained
The dollar is going to keep getting sand kicked in its face till the U.S. economy finally flexes some job-creating muscle.
The yen's surge this week prompted the G-7 rich countries to pledge Thursday evening to limit the Japanese currency's gains against the dollar. The United States, European Central Bank, United Kingdom and Canada will sell yen, in hopes of snuffing out a rally that threatens to add to Japan's economic distress by making its exports MORE
Colin Barr - Mar 18, 2011 6:42 AM ET
