Mark Boyar has been a value investor for more than 40 years.
Among the lessons he’s learned during his four-plus decades on Wall Street: even the best companies have to be bought at the right price, load up on stocks when they’re on sale after bear markets, and NEVER listen to the chairman of a company’s board.
Right now, stocks are not on the bargain-basement table. The bull market is currently at 53 months and counting – longer than the average bull market. However, it pales in comparison to the tech-boom fueled bull market of the late ‘90s, which lasted 113 months.
Certain tech stocks appear to be similarly overvalued this time around. Netflix (NFLX), Amazon (AMZN), Tesla (TSLA) and LinkedIn (LNKD) are all trading at well over 100 times earnings. Most China stocks also appear overcooked, Boyar says. And the Chinese housing bubble looks ready to burst due to massive overbuilding and huge price increases.
What happens if the China’s housing collapses? Chaos. A China banking crisis could dwarf the global crisis we just saw, Boyar believes.
Amid all the doom and gloom, Boyar does like one U.S. stock in particular: Madison Square Garden (MSG).
The company owns the “World’s Most Famous Arena,” Madison Square Garden; the New York Knicks and Rangers; and the TV network that airs both teams’ games. With plenty of free cash flow, the potential for a future dividend, and rumors of owners Charles and James Dolan taking the company private, MSG has a number of future catalysts.