Bill Miller sees decisive shift towards value; likes Meta, Amazon, Alibaba and crypto
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Closely followed investor Bill Miller said Wednesday that the stock market has "shifted decisively" towards value plays, as the Federal Reserve looks to tighten monetary policy to get inflation under control.
"[The market] has shifted to value and I think it has a lot more to run, especially if [interest] rates continue to rise," the founder, chairman and CIO of Miller Value Partners told CNBC.
In terms of particular stocks, Miller pointed to Tupperware (NYSE:TUP) as a value play with a "capital-light" business model. He also highlighted Meta Platforms (NASDAQ:FB) as a potential opportunity, given that the stock's recent sell-off has created a more attractive valuation.
Miller also pointed to Amazon (NASDAQ:AMZN) as a good prospect, noting growth in its AWS and advertising business. Meanwhile, he argued that Alibaba (NYSE:BABA) provides a value bet as well, given its growth prospects and the way its shares have been beaten down by Chinese regulatory worries.
Miller also gave a bullish opinion of Gannett (NYSE:GCI) and Vroom (NASDAQ:VRM).
Looking to the macro picture, Miller said tightening Fed policy "raises the possibility" that policymakers could make a mistake and overcorrect in the face of inflation, creating the risk of recession. He argued that the recent drop-off in stock prices came about as Wall Street priced in "some probability of a recession."
Still, Miller remained optimistic that the central bank will be able to avoid pushing the economy into contraction and pointed to positive signs in the current environment.
The famed investor noted a strong economy, including low unemployment, high corporate profits and aggressive consumer spending. He also said the stock market would benefit from a lack of competition from bonds.
"We don't see any value in bonds here," he contended, pointing to the fact that real rates remain negative, given the high rate of inflation.
Asked about his cryptocurrency investments, Miller clarified an earlier report that he had put nearly 50% of his net worth into Bitcoin (BTC-USD) investments. He reported that he had made a relatively small bet on Bitcoin years ago, which eventually grew so much it became about half his net worth. He noted that the recent drop in the crypto market has changed this ratio.
Despite this recent setback to his net worth, Miller repeated his bullish view of the crypto market, pointing to increased institutional backing for Bitcoin and Ethereum (ETH-USD). He added that crypto miners have an attractive valuation at these levels.
For his crypto call, Miller specifically mentioned Stronghold Digital Mining (NASDAQ:SDIG) and Silvergate Capital (NYSE:SI).

For more on Miller's crypto opinions, see his view of Bitcoin's value versus gold.