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 […]

Buffett on Investors’ Greatest Mistake

In a wide-ranging interview with CNBC, Warren Buffett says he thinks there is support for the huge gain in stocks we’ve seen over the past 10 months, and stresses that investors shouldn’t try to time the market. “There has been a lot of things that have been cleaned up in the economy in the last […]

Gabelli likes Natural Gas, Auto Parts

Gamco’s Mario Gabelli says he’s looking at natural gas firms and auto parts companies as we head into 2010. Gabelli tells CNBC that the U.S. is “tired of depending on the Middle East” for energy needs, and that companies like National Fuel & Gas can benefit from that sentiment. He also expects the auto industry […]

Tilson Down on Housing, Bullish on Berkshire

Whitney Tilson of T2 Partners says that Berkshire Hathaway is a buy, and says he thinks the housing market is headed for trouble. Tilson, one of the few to call the housing bust ahead of time, says he doesn’t think the housing market will see a “calamity”, but he does think millions more foreclosures are […]

Herro Still High on Some Financials

David Herro, who was recently named one of Morningstar’s fund managers of the decade, likes several financial stocks right now. Herro tells Bloomberg that he’s particularly high on asset management businesses, which he says get hit hard in downturns but over the long run are good businesses. Herro also says Japanese markets are starting to […]

Forester on Tech Stocks, Financials

Tom Forester of the Forester Value fund says he’s still finding value in the market after the big run-up, and one area he’s focused on is technology. In an interview with CNBC, Forester says he likes value tech stocks, citing Microsoft and HP as companies that look attractive. “We think in almost any kind of […]

Leuthold on Stocks, Gold, and the Demise of the Euro

We recently highlighted Steven Leuthold’s 2010 outlook, noting that the longtime bear who turned bullish last year is optimistic on the first half of the new year, but pessimistic on the second half. In a recent speech highlighted by Advisor Perspectives, Leuthold expanded on that outlook and offered his thoughts on the current market. He […]

Barron’s Roundtable: Gabelli, Zulauf Weigh In

Barron’s has tapped a number of top strategists for its annual start-of-the-year “Roundtable” feature, with gurus such as Bill Gross, Mario Gabelli, and Abby Joseph Cohen offering their takes on where the market and economy are headed in 2010. And, overall, the outlook is positive. “Our crowd thinks the market could gain another 5% to […]

What Works in Year Two of a Bull?

James O’Shaughnessy’s What Works on Wall Street details one of the most extensive studies of stock returns and stock-picking strategies ever performed. Now, as we approach the second year of what appears to be a bonafide bull market, O’Shaughnessy’s firm has new data on what works during different stages of bull markets. In a piece […]

Berkowitz on Ignoring the Crowd

Bruce Berkowitz, whose Fairholme fund has produced exceptional long-term returns, says the reason it has fared so well is a willingness to go against the crowd. Berkowitz also tells Bloomberg that he focuses on the amount of cash companies are producing, an approach that led him to shy away from financial stocks during the sector’s […]

Zandi: More Stimulus Needed

Moody’s Economy.com Chief Economist Mark Zandi says that more stimulus is needed to ensure the U.S. doesn’t slip back into recession. Zandi tells Bloomberg that inflation will be no threat in 2010 or 2011, and that the government needs to do what is necessary to make sure the economic recovery turns into sustained expansion, rather […]

Validea’s Reese High on High-Quality Stocks

In his latest column for Canada’s Globe & Mail, Validea CEO John Reese says that investors would be wise to focus on “high-quality” stocks, particularly given current market conditions. Reese notes that in financial crises, “junk” stocks tend to get hit particularly hard, because companies with weak balance sheets are least likely to survive a […]

Fisher on which Sectors to Target

In an interview with Bloomberg, Kenneth Fisher says that he’s high on some chemical stocks right now, for both fundamental and cyclical reasons. Fisher says the stocks that usually lead early in a bull market are those that fared well in the first half of the preceding bear market, but then got hammered in the […]