Charles Schwab’s Liz Ann Sonders — who made what appear to have been very accurate calls on the start and end of the recent recession — says the U.S. economic recovery is now entering self-sustaining mode. “It’s more than just a ‘sugar high’,” Sonders tells Harlan Levy in an interview on Seeking Alpha. “This is […]
Fund manager Ken Heebner says he thinks the U.S. economy will continue to recover, regardless of what happens with Europe’s debt woes. “I think the American economy is not dependent on what happens in Europe,” Heebner tells CNBC. “The uptrend in the American economy, I think, is strong. I think the consumer has shifted decisively […]
Author and Wharton professor Jeremy Siegel continues to be bullish on the market, saying he sees another 10% to 15% in gains for stocks by year-end. Siegel says that “extraordinarily strong” earnings and worldwide economic growth are behind his short- and medium-term bullish stance.
In his latest Forbes column, Ken Fisher reiterates his bullish stance on stocks, and offers several reasons why he’s optimistic. Among Fisher’s bullish points: “The GDP-weighted global yield curve (spread between long-term and short-term government interest rates) is steeper than it has been since the 1960s.” That, he says, means increased future lending for banks, […]
MarketWatch columnist and money manager Jon Markman says that while many investors don’t believe it, the rally still has plenty of room to run — and that corporations will keep it rolling even if individual investors don’t. Markman points to the government’s massive stimulus plan, record low interest rates, and the large amounts of money […]
Jeremy Grantham isn’t the only successful investor who’s finding big values in big stocks. Thomas Perkins and Donald Yacktman are among the investors with strong long-term track records now finding good buys in large-cap stocks, BusinessWeek reports. Perkins, whose Perkins Investment Management Mid-Cap Value fund has outperformed its peers by more than 4 percentage points […]
In his latest quarterly letter, GMO’s Jeremy Grantham says stocks are overvalued, but likely to continue rising — and rising to dangerous “bubble” levels if the economic recovery is a slow one. “Even though I guessed last April that we would have a quick rally to 1100, this looks quite likely to be far more,” […]
Are fears about the burgeoning U.S. government debt merited, or overblown? In an interview with CNBC, University of Texas Economics Professor James Galbraith says that the debt discussion involves a good deal of “fearmongering”, and that low interest rates mean the U.S. will have “no problem” financing its debt. (In fact, according to CNBC, the […]
Blackrock’s Bob Doll says that, while it may be due for a “stall” or sideways consolidation, he thinks the market’s longer-term direction will continue to be upward, as long as we continue to see strong GDP, earnings, and revenue numbers. He’s high on energy- and industrial commodity-related stocks.
With the market up close to 80% off its March 2009 lows, is there still money to be made in stocks? Two value managers with excellent long-term track records, Bill Nygren and Russell Croft, both tell BusinessWeek that there is. Nygren says that while many investors are focusing on 2010 earnings to gauge market value, […]
Whitney Tilson says that with the stock market up some 75% from its March 2009 lows, it’s time to “grind it out” and wait for opportunities to “be greedy”. In an interview with Forbes.com, Tilson says that a year ago the market offered investors “perhaps a once in a lifetime great opportunity to be aggressive […]
Wells Capital Management’s James Paulsen says that while many are envisioning a below-average economic recovery, the rebound has thus far been very normal, if not better than average, and he sees a chance of the S&P 500 climbing to 1,350 by year-end. “The look of this thing so far at least is very normal, if […]
Value manager Ron Muhlenkamp, whose fund has beaten the S&P 500 by about 5% per year over the past decade, says he’s keying in on several financial services firms, as well as technology stocks. Muhlenkamp tells CNBC that he thinks that, while people are now saving more of their money, they’ll eventually want to return […]
In an interview with Business Insider, Validea CEO John Reese discusses his Warren Buffett-based investing strategy, which is up more than 50% in the last year. Reese also talks about his other Guru Strategies, which are based on the writings of such investing greats as Martin Zweig, Peter Lynch, David Dreman, and Benjamin Graham. And […]
Newsletter tracker Mark Hulbert says that the market has recently triggered a rare “buy” signal that has historically been a precursor to strong stock gains. The indicator is termed “breadth thrust” by Ned Davis Research, the firm whose data Hulbert cites in his latest MarketWatch article. The indicator flashes a “buy” signal when percentage of […]
Each week, we take a look at which stocks John Reese’s Validea.com Guru Strategy computer models have newfound interest in, and which they have soured on. Here’s a look at some of the stocks John’s strategies have upgraded or downgraded today. A number of healthcare-related stocks are among the movers.
In an interview with WealthTrack’s Consuelo Mack, Yale economist Robert Shiller says that while the broader market is now selling at a significantly higher valuation than historical norms, stocks are still a “reasonable part of a portfolio”. Shiller, who says his 10-year P/E metric indicates the S&P 500 is now selling at about 22 times […]
Hedge fund guru and author Joel Greenblatt talks about the concepts behind and implementation of his “magic formula” investing strategy in Forbes’ latest “Intelligent Investing” interview. Greenblatt also discusses the importance of keeping emotions at bay and embracing long-term thinking for investors. And he talks about the areas of the market that have been popping […]
Jeremy Grantham says the U.S. stock market is now “thoroughly expensive” — except for one subset of the market — and also says he sees more bubbles forming in various parts of the globe. In an interview with The Financial Times, Grantham says stocks have moved from being very cheap to being expensive in the […]
Wharton professor and Stocks for the Long Run author Jeremy Siegel says the recession is definitely over and the economy has entered a self-sustaining expansion that isn’t reliant on stimulus dollars. And, he says stocks could gain another 8% to 10% by year-end. “What we have seen over the last three months are the first […]
Top fund manager Ken Heebner says that even after the big stock market rally, we’re still seeing a “historic buying opportunity”. But another investing guru, Bill Gross, is less optimistic. Heebner tells CNBC that he thinks the economy is in the beginning of several years of expansion. Consumers are spending again, and he expects an […]
John Mauldin says high unemployment and coming big tax hikes are creating a “50/50” chance the U.S. will dip back into recession in 2011. Mauldin tells Bloomberg that means a 40% plunge could hit the stock market, and that investors should treat the current market as a trader’s market.
Legendary contrarian investor David Dreman is, not surprisingly, maintaining his contrarian approach these days, keying in on two unloved investments: stocks and real estate. “Everything people are cowering away from today I would prefer to invest in,” Dreman says in a recent interview with GuruFocus.com. “If we have an inflationary environment, value stocks should do […]
Another top strategist who is discussing the perils of market timing is Charles Schwab Chief Investment Strategist Liz Ann Sonders. In her latest market commentary, written with Schwab’s Brad Sorensen, Sonders says that investors who remained on the sidelines waiting for the market to turn downward missed out on some strong first-quarter gains. “This again […]
According to a new study, mutual fund investors don’t just tend to buy high and sell low — they also tend to do so shortly before the stock market reverses itself, causing them to get hit by big losses and miss out on big gains. The study, highlighted by Mark Hulbert in his latest New […]