LMM CIO Bill Miller: Long the S&P 500, short the 10-year Treasury

Bill Miller speaking at the Delivering Alpha conference in New York on Sept. 13, 2016.
David A. Grogan | CNBC
Bill Miller speaking at the Delivering Alpha conference in New York on Sept. 13, 2016.

Mutual fund legend Bill Miller likes the stock market and doesn't like long-term government bonds.

The chief investment officer of LMM spoke at the 2016 Delivering Alpha conference on Tuesday. He recommended investors go long the S&P 500 stock market index and short the 10-year Treasury note.

On individual names, Miller likes Valeant and Amazon.

When it comes to stocks, he said there's still a strong level of investor trepidation toward risk.

"They're terrified of losing money. You see that all across the spectrum," he said. "Also, I think people tend to think of stocks as a monolith."

On Valeant, Miller acknowledged the controversy in which the company has found itself in over steep price increases it has put on certain drugs. But he said it's "a completely different company now" with the new management team.

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