This is a new term to me but the underlying common sense of Seth Klarman's comments is unarguable.

The trouble, of course is "When?".

I vividly recall a phone call with a friend of mine who called the dot-com collapse for all the right reasons and was very compelling. Unfortunately, John was two years early. Which made me, on the other side, wrapped up in the Silicon Valley euphoria look like a genius.

Back then, I was not right - just wrong at the right time. In much the same way, if Mr Klarman is not proved right very soon, that will be a cause for greater alarm, not complacency.