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He also trims shares as a company approaches full valuation.
After a good recent run and full valuation, we stay cautious".
"It's unusual to have synchronous full valuation around the world," he said.
MR. MAYO generally trims positions in stocks as they approach what he considers as full valuation.
There is plenty of food for the bears: multiple headwinds, a problematic US business and a full valuation.
Goldman Sachs, one of its top underwriters, slapped a "sell" rating on Dunkin' and a $23 price target, citing a "full" valuation.
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On the other hand, seed and Series A valuations are actually up, which means that high-quality companies are still raising money at full valuations and (perceived) lower-quality opportunities are not getting funded at all.
Full valuations, a flat or inverted yield curve (which bumps up interest expense) and expected increases from historically low loss rates on loans and credit cards are reasons not to bank on a strong run for the sector next year, he said.
Because of the costs and effort involved, full valuations are usually avoided unless they are absolutely necessary, e.g. a situation where an entire catchment is under threat.
"He certainly has achieved a much fuller valuation than anyone would've thought," said Matthew Harrigan, a media analyst with Wunderlich Securities.
This also means that total valuation (estimation of the full value of a water resource) is undertaken only when necessary.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com