Grantham Says Market Overpriced, But Likely to Rise

In his year-end letter, Jeremy Grantham says that equities are once again significantly overpriced, and that investors haven’t learned the lessons of recent market crashes. But, he adds, stocks will likely head higher in the short term. “All investors should brace for the chance that speculation will continue for longer than would have seemed remotely […]

Soros: China Overheating; Gold the “Ultimate Bubble”

Hedge fund guru George Soros made a couple big statements Thursday, saying that China’s stock market is “overheating”, and that gold is becoming the “ultimate bubble”. “Right now, the Chinese market is overheating and they have to slow it down,” Soros said on Bloomberg Television. “It remains to be seen how successful they are.” As […]

Herro: Stocks Still Cheap

David Herro, who was recently named one of Morningstar’s fund managers of the decade, says stocks are still cheap — especially compared to other asset classes. Herro says that during most downturns, his portfolios’ prices fall to about 50% of their underlying values. In the recent downturn, they fell to about 35%, he says, and […]

Biggs Still Bullish, Warns Against “Bubble Watching”

Hedge fund guru Barton Biggs says he remains bullish on stocks, despite the factors that have spooked some investors in recent days. Biggs tells Bloomberg that the U.S. economy is in a “strong recovery”, and that he thinks the U.S. will grow in the 5% to 5.5% range in the next couple quarters. He also […]

Arnott on Why the 2000s Didn’t Have to Be a “Lost Decade”

It’s no secret that the 2000s was a bad decade for the major U.S. stock market indices. The S&P 500 lost an average of 1% per year, some 3.6 percentage points worse than inflation, making it the worst decade for real returns on record. But in a recent paper, Research Affiliates’ Rob Arnott notes that […]

Doll: Stimulus Still Offers “Wind” at Investors’ Backs

In the latest episode of Consuelo Mack’s WealthTrack, BlackRock Global Chief Investment Officer of Equities Bob Doll says government stimulus is still providing a wind at the market’s back, and that investors shouldn’t forget that. Doll says he’s a stock picker who also looks at macro factors, and continued stimulus impact is one of the […]

What Really Drives Stock Gains?

In an interesting new study, MSCI Barra takes a look at what drives stock returns over the long haul — and the results might surprise you. In the study (click here for an HTML version; click here for a PDF version), Barra traces stock market returns to a handful of sources: inflation, dividend income, real […]