While there is still quite of bit of pessimism and talk of gloom and doom swirling around the market and the economy, Barclays head of asset allocation Tim Bond is sounding positively sunny. “History provides abundant evidence that the deeper the recession, the stronger the bounce. Even the recovery from the Great Depression conformed to this rule; real US GDP grew 10.8 per cent in 1934 and 8.9 per cent in 1935,” Bond writes in the Financial Times, citing several signs that we’re experiencing a “V” type recovery. “Over the rest of this year, the standard cyclical timing of a […]
WealthTrack has released some previously unaired parts of Consuelo Mack’s May interview with Yale Chief Investment Officer David Swensen. In the clip below, Swensen discusses a variety of topics, including why he thinks some corporate bonds are a good bet for professional investors but not a good bet for individuals; why individuals will always have trouble beating the market; and why his strategy in picking managers to invest Yale’s funds with is “all about the people”.
With the market continuing to surge, SmartMoney.com recently surveyed a number of top strategists to see just how much room they think stocks have to run, and found a good deal of optimism that was tempered by caution. Among the strategists: Charles Schwab Chief Investment Strategist Liz Ann Sonders; Yardeni Research President Ed Yardeni; and Bespoke Investment Group Founder Paul Hickey. Here’s a sampling of what they had to say: Sonders: “The train has been leaving the station for many indexes, and investors don’t want to be left on the cash platform,” Sonders said. She says investors are putting cash […]
In his August Investment Outlook on PIMCO’s web site, bond guru Bill Gross talks about two key — and interrelated — issues: whether the government will be able to “reflate” the economy to match past longer-term GDP growth figures, and why avoiding the big fees most investment advisors and funds charge is so crucial today Gross says nominal GDP growth has to grow close to 5% — its long-term average — for the economy’s long-term balance to remain intact. “Now, however, things have changed,” he says, “and it is apparent that there is massive overcapacity in the U.S. and indeed […]
The Financial Times recently interviewed several top strategists about the viability of “buy-and-hold” investing, and found that some are espousing more of a “buy-cheap-and-hold” approach. “In a challenge to the received wisdom of holding stock market investments for 20 years or more, to smooth out short-term volatility, some suggest that measures of cheapness can be used to make buying decisions and enhance performance,” writes the Times‘ David Stevenson. Here’s a sampling of what some of these strategists had to say: Robert Arnott, founder of Research Affiliates: “Basically, we have an industry which has developed a cult of equities — a […]