Question: Where do you go when you have nowhere else to go?
Answer: The stock market.
That's the view of billionaire investor Wilbur Ross
Global financial markets are living on borrowed time with geopolitical crises and deflationary risks still a concern, private-equity billionaire Wilbur Ross told CNBC.
"I think [markets] are living on borrowed time because investors have no alternatives," the chairman and chief executive of private equity firm WL Ross & Co told CNBC Europe's "Squawk Box" on Monday.
"Everyone's scared to death of long-term fixed income because we know rates will be going up, short-term fixed income doesn't give you any yield, commodities are going no place except down [so] where else can you put money unless you want to buy a $100 million [Alberto] Giacometti sculpture," he said.
Among the concerns Ross expressed were geopolitical.
Ross told CNBC earlier in the year that his company had been selling six times as much as it had been buying on the back of attractive stock valuations in the U.S. "We have been a seller on balance, not because we think a terrible crash is coming but we need to sell opportunistically because we tend to have relatively large stakes in relatively thin securities so we have to sell when the markets are very strong."
However, he added that geopolitical risks could still derail the apparent market recovery seen of late. "Markets tend to go farther in both directions than one might anticipate. I do think the big worries are geopolitical worries, that's one of the things we've been very concerned with all year and I've some concern about deflation becoming anew problem."
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