Bill Miller says path of least resistance for market from here is higher

Noted hedge fund manager Bill Miller is still betting stocks will rise.

“The path of least resistance for U.S. stocks is higher,” Miller said in a blog post dated April 18. “I believe it remains so, and will until either this expansion ends, or stocks become expensive relative to bonds and cash. Both appear to be a good ways off.”

Miller founded Miller Value Partners in 2016. Previously, he managed a fund at Legg Mason that beat the S&P 500 for 15 consecutive years through 2005.

U.S. market volatility picked up dramatically in the first quarter of the year. After hitting record highs at the end of January, stocks plunged into correction in February. The major indexes have since struggled to hold gains for the year amid worries about rising interest rates, a U.S.-China trade war, prohibitive regulation on technology giants and a peak in earnings growth.

“The greater risk to the market this year, in my opinion, is not economic, it is political,” Miller said, referring primarily to upheaval within the Trump administration.

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