Baupost’s Seth Klarman: the Fed has broken the stock market [Q4 Letter]

Baupost founder Seth Klarman told investors that the large amounts of stimulus that have been poured into the world’s economies are masking the severity of the problems caused by COVID-19. Q4 2020 hedge fund letters, conferences and more In a letter seen by the Financial Times, he said central banks had convinced investors that risk “has simply vanished.” He believes that as a result, the market is no longer able to serve as a mechanism for price discovery. Klarman criticizes the Fed The Baupost founder blamed the Federal Reserve for making it hard to determine how healthy the U.S. economy…