Investment legend Charlie Munger said at the Sohn conference in Sydney today (December 3) that the market is overvalued in many places and the current environment is “crazier” than it was in the Dotcom era back in the day. the late 1990s, which then led to its downfall.
“I see an era even crazier than the Dotcom era.”
Charlie Munger – Vice Chairman of Berkshire Hathaway Inc.
Munger also wished cryptocurrencies didn’t exist and praised China’s ban on their use.
“I wish they had never been invented. And again I have great admiration for the Chinese, I think they made the correct decision, which is to simply ban them. In my country, the English-speaking civilization has made the wrong decision, I cannot bear to participate in these crazy outbursts, one way or another.”
The S&P 500 index has more than doubled since the Covid-19 pandemic low last March, while Bitcoin is up more than 1,000%. Investors poured nearly $900 billion into mutual funds in 2021 — more than the past 19 years combined — according to data from Bank of America Corp. and EPFR Global.
The valuation of the US stock market is now higher than it was before the collapse caused by the health crisis and investors became nervous. Rising inflation is forcing central banks to tighten monetary policy, threatening to dampen the liquidity wind that has lifted assets.
Relations between the United States and China
Munger also weighed in on China’s global relations, urging Australia to act as a bridge between China and the United States.
“I think Australia has a deep relationship with China that could be in a constructive position, Australia as a bridge that encourages the US and China to have a better relationship.”
Munger is very optimistic about renewable energy.
“I like the fact that we are rapidly reducing burning coal, burning gasoline and burning diesel. I think it’s a smart thing the world is doing.”
#Investment #Legend #Charlie #Munger #Wishes #Cryptocurrency #Didnt #Exist