Cliff Asness Issues Warning on Stocks Pricing Inflation Drop
- AQR co-founder says ‘fat tail event’ would be macro economic
- Quant pioneer says world too quick to think valuations fixed
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Billionaire quant investor Cliff Asness warned Thursday that US stocks are vulnerable to a macro shock if inflation doesn’t stage a spirited decline as the market expects.
The co-founder of AQR Capital Management LLC told Bloomberg Television that despite last year’s declines equities remain expensive versus history, based on a broad assumption that price growth is set to slow.