Cliff Asness has seriously bad news for investors

Clifford Asness, president and managing principal of AQR Capital Management LLC.
Jonathan Fickies | Bloomberg | Getty Images

Investors don't have a lot to look forward to in the years ahead if Cliff Asness is correct.

The head of AQR Capital said Tuesday that looking at basic market valuations shows that stocks are expensive.

Compounding the issue is that an analysis of bonds indicates they, too, are not cheap, particularly if inflation picks up and interest rates rise.

"They're not usually expensive at the same time like they are now," Asness, whose firm manages more than $136 billion for clients, said at the Bloomberg Markets Most Influential Summit. "This could mean revert, meaning we could have (prices) fall and restore good returns going forward, or we could stagnate for a long term."