Carson Block, known for his ability to identify overvalued companies to short sell, recently advised investors to consider buying the largest US stocks as the market continues to climb higher due to steady inflows of capital. Despite concerns about high valuations as the S&P 500 Index reaches new records, Block believes that inflows from retirement funds will continue to drive further gains, especially for the most heavily-weighted stocks.
“Investors may benefit from simply investing in the ‘Magnificent Seven,’ referring to the group of mega-cap stocks,” Block stated in an interview with Bloomberg TV. Reflecting on his career as an activist short seller, Block admitted that he could have potentially achieved better returns by being long on the S&P 500 instead.
Block’s comments come at a time when investor sentiment has improved towards top technology companies such as Tesla Inc., Apple Inc., Microsoft Corp., Alphabet Inc., Amazon.com Inc., Nvidia Corp., and Meta Platforms Inc. Following a period of lackluster performance, these tech giants have regained momentum, supported by strong corporate earnings and a resilient US economy.
Regarding his stance on China, Block reiterated his skepticism towards the market, which he considers “uninvestable.” Instead, he has turned his focus to Vietnam, where Muddy Waters has launched a long-only fund. Despite recent efforts by Beijing to stimulate the Chinese economy, Block remains concerned about issues related to corporate governance, policy unpredictability, and geopolitical risks.
“In the medium to long term, I still fail to see the rationale behind investing in China,” Block remarked, highlighting the country’s lack of reliance on foreign capital and its apparent reluctance to accommodate foreign investors in the long run.
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Carson Block, known for his ability to identify overvalued companies to short sell, recently advised investors to consider buying the largest US stocks as the market continues to climb higher due to steady inflows of capital. Despite concerns about high valuations as the S&P 500 Index reaches new records, Block believes that inflows from retirement funds will continue to drive further gains, especially for the most heavily-weighted stocks.
“Investors may benefit from simply investing in the ‘Magnificent Seven,’ referring to the group of mega-cap stocks,” Block stated in an interview with Bloomberg TV. Reflecting on his career as an activist short seller, Block admitted that he could have potentially achieved better returns by being long on the S&P 500 instead.
Block’s comments come at a time when investor sentiment has improved towards top technology companies such as Tesla Inc., Apple Inc., Microsoft Corp., Alphabet Inc., Amazon.com Inc., Nvidia Corp., and Meta Platforms Inc. Following a period of lackluster performance, these tech giants have regained momentum, supported by strong corporate earnings and a resilient US economy.
Regarding his stance on China, Block reiterated his skepticism towards the market, which he considers “uninvestable.” Instead, he has turned his focus to Vietnam, where Muddy Waters has launched a long-only fund. Despite recent efforts by Beijing to stimulate the Chinese economy, Block remains concerned about issues related to corporate governance, policy unpredictability, and geopolitical risks.
“In the medium to long term, I still fail to see the rationale behind investing in China,” Block remarked, highlighting the country’s lack of reliance on foreign capital and its apparent reluctance to accommodate foreign investors in the long run.
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