Markets

Another billionaire questions whether US stocks should be at new highs

Markets signaling growth ahead: Marc Lasry
VIDEO0:5200:52
Markets signaling growth ahead: Marc Lasry

The U.S. stock market, making a string of recent record highs, "doesn't make much sense," distressed debt specialist Marc Lasry told CNBC Monday, sharing the view of fellow billionaire investment titan Larry Fink.

"Everyone is a bit surprised," said Lasry, co-founder of Avenue Capital, which has $11.3 billion of assets under management. "But the market is telling us what's going to happen next year [or] the next two years."

While questioning the advance in stocks, Lasry said on "Squawk Box" the market may be signaling a stronger-than-expected U.S. economy, with a growth rate somewhere in the 2 to 3 percent range. He said a stronger stock market is good for debt investors.

Fink, chairman and CEO of BlackRock, said on "Squawk Box" last week the stock market should not be at record highs. However, Fink put in a caveat, saying if earnings were to pick up, he might change his view.

On the U.K. vote to leave the European Union, Fink said he still believes Britain faces a "short-term" recession because of the Brexit vote, despite the Bank of England's surprise decision Thursday to keep interest rates unchanged.

Lasry is more aligned with Fink on Brexit, saying he expects the economic situation in Britain in get worse before it gets better.

But in the long-run, Lasry see's the U.K. ending up better off without the EU, saying bold investors should act now to profit from the global upheaval created by unexpected events such as Brexit.

"Cash is king," but now is the time to act, Lasry added. "Uncertainty creates opportunities."

Avenue Capital was about 30 percent invested, with about 70 percent in cash, ahead of the Brexit vote. Lasry said he aims to put the cash to work over the next year or so in northern Europe and the U.S. oil patch.