O’Shaughnessy: History Tells Us Now Is The Time to Buy

Jim O’Shaughnessy, Chairman and CEO of O’Shaughnessy Asset Management, believes that equity valuations “present buying opportunities akin to 1974 and 1982.” He writes that investors need to ignore short-term volatility and market-bottom calling, and instead focus on where stocks will be three to five years from now. O’Shaughnessy offers a number of historical stats that […]

Gross: More Gloom — and “Enormous” Opportunities

Pimco founder Bill Gross lays out some ugly economic predictions in the latest issue of Forbes, but also offers a tip for how investors can profit from the U.S. financial woes: by buying preferred shares and senior debt of financial companies benefiting from the government’s bailout spending spree. In the past year, writes Forbes’ Bernard […]

Values Abound in Small-Caps

In this week’s Validea Hot List newsletter, John Reese says that his Guru Strategy computer models are finding an array of values among small-cap stocks, particularly among those that would be considered small-cap growth firms. Reese’s Hot List portfolio added eight new stocks on his regularly scheduled rebalancing, all but one of which are in […]

Arnott Sees Huge Opportunities in Bonds

Add Robert Arnott to the list of well-known previously bearish investment managers who are seeing value in the market. “I like investments, if I’m getting paid to bear risk,” Arnott tells Brian Milner of Canada’s Globe and Mail. “And right now, this is one permabear who is strongly bullish on a wide array of markets.” […]

Pimco’s El-Erian: Beware of Value Traps, Seek Catalysts

Pimco Co-CEO Mohamed El-Erian tells CNBC that “every investor should go back to the basics” in 2009. According to El-Erian, investors need to focus on “diversified asset allocation, good implementation vehicles, and solid risk management”. El-Erian believes equities could lag until investor confidence improves and warns that some investments could be value traps — meaning […]

Bogle: Earnings Will Come Back Strong

John Bogle, founder of The Vanguard Group, tells PBS’ Darren Gersh that he expects corporate earnings will come back stronger than the 5 percent average growth they’ve exhibited over the past century as they revert toward their mean. Bogle didn’t say exactly when he expects the earnings rebound to begin. But he does say he […]

Shilling: Watch Out For S&P 600

Gary Shilling, president of A. Gary Shilling & Co. and Forbes magazine columnist, speaks to Yahoo! Tech Ticker about his outlook for stocks. He says that investors need to approach things “very cautiously” and that earnings on the S&P could come in at $40 per share next year. Assuming you have a multiple of 15 […]

WSJ, Grantham on The Trouble with Earnings

Is the market cheap, as investors like Bruce Berkowitz and David Dreman have said recently? Or is it still overpriced, as others, like Jim Rogers and Bill Gross, have maintained? The answer may depend on which set of corporate earnings you look at. That’s the issue The Wall Street Journal’s Mark Gongloff examines today. Gongloff […]

The Stars — and Fallen Stars — of 2008

Kiplinger’s Fred Frailey looks this week at how some of the world’s top money managers got hammered by the recent market crash, as well as at how other noted managers lived up to their reputations and avoided the plunge. According to Frailey, some of 2008’s big-name losers have been Legg Mason’s Bill Miller (down 59% […]

Tilson on “Points of Maximum Pessimism”, and Buffett Bashers

In a column for The Financial Times, fund manager Whitney Tilson says that, while he’s no optimist about the U.S. economy’s short-term prospects, he does “believe the level of panic that has overtaken the market has created buying opportunities for investors who can see light at the end of the very dark tunnel.” Tilson indicates […]

Consumer Stocks Still Kickin’

Continuing its look at what has and hasn’t been working in the market of late, Bespoke Investment Group says today on Seeking Alpha that the consumer staples and healthcare sectors have had the best relative strengths versus the S&P 500 over the past 12 months. That’s not surprising, Bespoke says, given those sectors’  reputations as […]

Harvard’s Porter: Stimulus Should Be More than Short-Term Boost

Famed strategy expert Michael Porter of Harvard Business School shares his view on America’s overall economic strategy on CNBC. Since the election, he says, we are off to a good start and President-elect Obama and America have gained “a lot of goodwill” internationally. However, Porter questions whether the probable stimulus package will go to efforts […]

Hussman: Market Undervalued, But Rally Won’t Last

John P. Hussman, Ph.D., president of Hussman Investment Trust, thinks the market is “undervalued” and guesses “that the general tenor of the market may remain tepidly positive for a few more weeks”. But, he warns we may “ultimately observe another frightening leg down in the first part of next year –- possibly to re-test the […]

Five Top Managers Are Buying — Cautiously

Noticing a trend that we’ve picked up on in recent weeks, Fortune notes that several extreme value investors have begun to see good, safe buys in the current market. In an interview with the magazine, top fund managers Robert Rodriguez, Susan Byrne, Jeremy Grantham, Tom Forester, and Leslie Christian all tell Fortune that they’re seeing […]

Romney, Schmidt, Fiorina on The Crisis

David Gregory’s tenure on NBC’s “Meet The Press” got off to a particularly interesting start over the weekend, with former Massachusetts Gov. Mitt Romney, former Hewlett-Packard CEO  Carly Fiorina, Google CEO Eric Schmidt, and Wal-Mart CEO Lee Scott among those discussing the economic crisis. The consensus among the panelists was that the U.S. government needs […]

Turnaround Guru Calls for More Help for Mortgage Owners

John Bogle (“Help for Mortgage Holders Is What We Need”) isn’t the only influential voice saying that the government needs to focus more on mortgage owners if it wants to restore order to the economy. In Fortune’s 2009 investment preview, Wilbur Ross says that “homeowners have now lost $5 trillion, and 12 million families have […]