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Greenwald: The Most Extraordinary Thing About This Market

Investors are again being offered an extraordinary opportunity to put capital to work in high-quality companies at a good price, says Columbia professor Bruce Greenwald.

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Ryan Leggio: Generally speaking, we've been hearing some investors say that these high-quality businesses, the Johnson & Johnsons of the world, American Express, which can do well in deflationary and inflationary environments, are some of the cheapest stocks in the market. Would you agree with that?

Bruce Greenwald: That is the most extraordinary thing about this market, that when you build a portfolio, and you're diversified so you're not betting everything on your judgment about one thing, you've stayed away from the high leverage stocks that can kill you, you've got a good margin of safety so you're going to get a good return, and you're not overpaying. What you're left with is the macro risks. And the macro risks are deflation and inflation.

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Ryan Leggio does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.