Stiglitz: This Is No Time for Austerity

Paul Krugman isn’t the only Nobel Prize-winning economist saying austerity measures are threatening to derail the economic recovery — not help it. Columbia University’s Joseph Stiglitz tells CNBC that there is a misconception that government cutbacks inspire confidence in the private sector. He says there is a “very high risk” of a double-dip recession, and […]

Guru Strategy Rating Changes: MSFT Rising, AMZN Falling

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. Several big names are among the movers, including Microsoft, Amazon.com, and AstraZeneca.

Ritholtz High on Cash, Looking for Clarity

Barry Ritholtz, who turned bullish right around the March 2009 low and bearish shortly before the “flash crash” in May, is now sitting largely in cash — but says his best guess is that we’re in a “normal” correction, not something more severe. Ritholtz tells Yahoo! TechTicker that he’s 25% in stocks and 75% in […]

Winters Seeing Plenty of “Fat, Slow Pitches”

David Winters, whose Wintergreen fund has a solid market-beating track record, says that he’s seeing a lot of “fat, slow pitches” in the market right now, and that he’s particularly high on Asian stocks. “We’ve been more or less a net buyer recently,” Winters tells Barron’s. “What is just so striking is that you can […]

Paulsen: Bullish Factors Aligning

Wells Capital Management’s Jim Paulsen says lower Treasury rates will have a positive impact on the economy in the second half of the year. Paulsen tells Bloomberg that with the market down 15% or so, Treasury rates falling, and corporate earnings continuing to climb, a bit of resilience from the economy should bring greed back […]

Krugman Sees Early Stages of Depression

Nobel-Prize-winning economist Paul Krugman has said in recent months that if more stimulus is not injected into the economy, the economic recovery very well may be derailed. Now, he sees more than a “derailing”. “We are now, I fear, in the early stages of a third depression,” Krugman writes in his latest New York Times […]

Berkowitz Still Sees Value in Financials

Bruce Berkowitz, whose Fairholme fund has returned close to 13% per year over the past decade while the S&P 500 has been in the red, says he’s still finding a good deal of value in one of the market’s unloved areas — financial stocks. “Investors have lost much of their wealth from financial institutions over […]

Hussman Sounds Recession Bell

Fund manager John Hussman is amping up his recession warnings, saying that, “based on evidence that has always and only been observed during or immediately prior to U.S. recessions, the U.S. economy appears headed into a second leg of an unusually challenging downturn.” Hussman recently noted that of the four pieces of his recession indicator, […]

Romick’s Three Current Portfolio Themes

FPA Crescent fund manager Steve Romick, who has a lengthy track record of beating the market, recently talked to Morningstar about his multi-asset approach to portfolio management. Romick says three themes currently guiding his portfolio are energy, healthcare, and subprime whole loans.

The Changing Face of Investment Research

While the tenets of good investing remain much the same as they were decades ago, the tools that average investors can use to implement those concepts have undergone something of a renaissance in recent years. In his new book Tradestream Your Way to Profits, Zack Miller examines some of the changes that have occurred, and […]

Lynch-Inspired Model Far Outpacing Market

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Peter Lynch-inspired strategy, which has averaged 7.6% annualized returns  since its inception nearly seven years ago, in a period in which the S&P 500 has returned just 1.0% per year. […]

Top Fund Manager’s Three Keys to Evaluating a Company

Chuck Akre has produced an exceptional long-term track record as a mutual fund manager, and he recently offered some strategy tips in an interview with The Motley Fool. Akre cited three main factors that go into his assessment of a company, the Fool’s Eric Bleeker reports: its business model (i.e., whether it has a competitive […]

Mobius: China Won’t Face U.S.-Style Housing Crisis

Templeton Asset Management’s Mark Mobius says that China isn’t headed for a housing crisis like the U.S. experienced, and that it and other emerging markets are better positioned than many developed countries right now. In an interview with the Financial Times, Mobius says that China and other emerging market countries have much lower debt/GDP ratios […]

Forester on Opportunities in a Range-Bound Market

Tom Forester, the lone stock fund manager to post positive returns in 2008, sees a range-bound market ahead that will offer opportunities for value investors. In an interview with Barron’s, Forester says it will be difficult for the economy to sustain strong growth. “The impact of the stimulus package is winding down, and home prices […]

Sonders: Opportunities in a “Gray” Market

Charles Schwab Chief Investment Strategist Liz Ann Sonders says that she sees a range-bound market for the short term, but that opportunities exist — particularly for investors who are willing to rebalance their portfolios. “We do feel the market is likely somewhat range-bound for now until a catalyst knocks it out in one direction or […]

Top Newsletter Still Betting on Stocks

Back in the spring of 2009, while many were still mourning the “death” of stocks, Gray Emerson Cardiff’s Sound Advice newsletter said that we were on the cusp of a “SuperCycle” for stocks, in which stocks would outperform real estate. Now, after the market’s recent rough stretch, the newsletter isn’t wavering. “This is a correction […]

Gross, PIMCO Shifting into Equities

Bond giant PIMCO is making a move into equities, including equities in Europe, according to co-Chief Investment Officer Bill Gross. While some European countries face trouble going forward, Gross tells CNBC that “corporate equities … in terms of valuation, are selling at very low P/E ratios and in some cases might be perceived to be […]

Guru Strategy Rating Changes: GD Rises — and Falls

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. Among the big-name movers is General Dynamics, which is being upgraded by one model […]

El-Erian on Getting Beyond the New Normal

PIMCO chief Mohamed El-Erian still sees a slow-growth “New Normal” for economies and investors, but he doesn’t think that New Normal will last forever. El-Erian tells CNBC that he sees the New Normal as a 3 to 5 year phenomenon, and that the U.S. can move past it as balance sheets improve.

Rogers on Where to Find Contrarian Plays

In the latest edition of Forbes.com’s “Intelligent Investing”, Ariel Investments CEO John Rogers Jr. discusses his investment strategy, and explains why he’s high on several media companies and other out-of-favor firms right now. “We love low P/Es,” says Rogers, whose flagship Ariel Fund has returned close to 7% per year over the past decade while […]

Soros: Recession “Almost Inevitable” for Europe

Hedge fund guru George Soros says that a recession in Europe is “almost inevitable”, and that the push to curb government spending while major economic problems remain there could lead to a downward spiral. Soros, who last week said that the world had just entered “Act II” of the global financial crisis, told a seminar […]