Reuters reports that star hedge fund manager Seth Klarman of Baupost Group is bearish and:
-is back to holding 30% cash and is considering returning money to investors because he thinks stocks may earn 0% for the next decade.
-sees no great value at current valuations.
-believes the market is being extensively manipulated by the government.
-see inflation as the biggest risk and thinks there is a substantial risk that interest rates will rise above 10%.
-has positioned his portfolio by buying far out of the money options on interest rates (predicting a rise) and by looking for cheap real estate assets (presumably as an inflation hedge).