CNBC’s Kelly Evans speaks to Bill Miller, Legg Mason fund manager, about current economic conditions.

Bill Miller

Bill Miller: Conditions for a bad market just don’t exist

Best bull market of our lifetime?

Bill Miller, Legg Mason Opportunity Trust, shares his thoughts on the market’s long bull run and whether it’s likely to remain.

Transcript

we may be in the best bull market coming off the 660 level. if we could maintain low inflation. if growth can continue globally at a slow pace, evaluations get a lot higher. it wouldn’t necessarily be healthy. in ’85 or ’86 people were claiming inflation must come back. it is complete garbage. it’s going to inflate. i remember every 1,000 points from 800 all the way to 15,000 was the top. yeah. alan able son. god rest his soul. his was every 100 points. i’m amazed that we were able to ring the complacency at 15,000. but we were. people are scared, right? we could make another sustained advance that could go on i don’t know how many thousands of points before everyone comes back in and feels complacent again. it all depends. from my standpoint — 16 times earnings on the market right now. so that’s a little above the historic average. my concern about this market. we’re in a classic market where we start under valuation. 660t iis cheap earnings. low multiples on low levels of earnings. now fair multiples on good levels of earnings. but the next stage could be high multiples on peak earnings. that leads you to the next decline. so you’re convinced that this is not juscyclical. this is between ’82 and 2000. i’m not convinced of that. it is certainly cyclical.