Tiger’s Robertson Predicting Bursting Bubbles in Near Future

September 23, 2014 James Heinsman In the News

Speaking on a panel during the Bloomberg Markets Most Influential Summit held last Monday, Julian Robertson, founder of Tiger Management, forewarned his audience that bubbles in the financial markets are about to burst.

Robertson, one of the hedge fund industry’s most successful managers explained that despite a recovering economy, one of the driving forces behind the recovery are smaller bubbles in the financial markets which are eventually going to “bite us.”

“The bubble will burst in a very bad way,” said Robertson.

During the panel discussion Robertson said he is most worried about the bond market. In order to give their economies a nudge governments have been buying bonds, which have caused interest rates to fall. Robertson explained that due to the low interest rates many investors have been forced into the stock market, and the large numbers of people investing in securities is creating a bubble.

Robertson pointed out that bubbles always burst. The reason bubbles form in the first place is because it is hard for investors to see why prices should ever go down. “The drop in 1987 come out to the blue,” Robertson said.

Bloomberg Markets Most Influential Summit, Julian Robertson, Tiger Management,

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