Paulson on Financial Buying Binge

After profiting hugely from shorting financial stocks last year as the sector tanked, hedge fund guru John Paulson has been buying up beaten-down financials this summer. Paulson has bought a stake of about 2% in Citigroup, the New York Post reports, citing sources. “One source said that Paulson sees Citi’s shares trading closer to its […]

Beating the Timing Temptation

As Liz Ann Sonders notes in the posting below, a lot of investors are now wondering whether it’s too late to jump into the market, or, for those who have been in the market during the rally, whether it’s time to cash out. As Sonders says, such all or nothing decisions are very dangerous — […]

They Got It Right in March; What Do They Say Now?

A few weeks ago, we highlighted how Jeremy Grantham — who quite presciently had advised investors to “reinvest when terrified” back in March — is now sounding much more cautious. And, according to The Wall Street Journal, Grantham isn’t the only strategist who correctly called the market’s upturn but is now feeling less optimistic. “In […]

Berkowitz: “Great Environment” for Stock-Pickers

Top fund manager Bruce Berkowitz, whose Fairholme Fund has earned about 12% per annum over its 10-year history while the S&P 500 has lost about 3% annualized, says that this is a “great environment for an investor, for a value-based stock picker, security picker”, and that he’s continuing to see a number of bargains in […]

M.I.T. Hedge Fund Guru Shares His Secrets

In an interview with WealthTrack’s Consuelo Mack, hedge fund manager, author, and M.I.T. professor Andrew Lo says that the financial crisis has shown that a new type of diversification is needed, that buy-and-hold investing is an incomplete approach, and that using a long-only approach puts individual investors at a significant disadvantage. Lo, who also heads […]

Stiglitz: Asian Recovery Is “Remarkable”

Two-time Nobel Prize-winning economist Joseph Stiglitz, who recently said he sees a period of “malaise” coming for the U.S. economy, is much more upbeat on Asia’s economies. “Asia’s recovery has been remarkable,” Stiglitz said at a conference in Bangkok, Voice of America reports. “People are talking about a ‘V’ shaped recovery. The big issue that […]

Has Housing Bottomed? Shiller Weighs In

Yale economist and Case-Shiller housing price index co-founder Robert Shiller talks with Bloomberg News about the current housing market, and the impact of psychology and emotion on home purchases. He says “confidence is tentatively back” in the housing market, and talks about whether last month’s increase in his housing index indicates we’ve hit a bottom. […]

Buffett: Inflation Coming, Congress Must Step Up

In an Op-Ed for The New York Times, Warren Buffett writes that significant inflation problems could be headed our way, and that it’s up to Congress to keep it from growing out of control. “The United States economy is now out of the emergency room and appears to be on a slow path to recovery,” […]

How Many Stocks Is Too Many?

One of the key questions any investor must grapple with is, “How many stocks should I own?” Jonathan Burton addresses that issue in a recent MarketWatch column, taking a look at focused funds — those that hold relatively few stocks compared to most other mutual funds. “Focused funds — portfolios with only a couple of […]

’08 Top Economist Says Consumer Will Be Back

Joel Naroff, who was named the top economic forecaster in 2008 by Bloomberg Business News, thinks the modest recent increase in consumer spending will continue, and grow stronger in the fall. “It’s not that there is going to be a huge growth in income, or jobs are going to start growing,” Naroff tells Forbes.com. “It’s […]

Slower Growth, But No Double Dip, Says Cohen

Recently, we highlighted the bull market call of Goldman Sachs’ Abby Joseph Cohen. Now, in an interview with Bloomberg news, Cohen expands on her outlook for the economy and the stock market. Some of her key points: She expects slower growth than typically seen coming out of a recession, but she doesn’t see a “double-dip” […]