Fisher: Second Leg of Bull Coming

Kenneth Fisher says the current correction is “the most textbook perfect” one he’s seen in 12 years, and says the second leg of a bull market is coming. Fisher writes in his latest Forbes column that the last correction that was this textbook was the 1998 correction, which was fueled by the Asian contagion, the Russian ruble crisis and the Long-Term Capital Management hedge fund debacle. ” Like that one, this year’s minicrash had been pushed along by several scary stories that turned out to be nonsense but were nonetheless impossible to dispel,” Fisher writes, citing the PIIGS debt “hysteria” […]

Arnott: Investors Looking in Wrong Places for Sovereign Debt

In his latest newsletter (click here for a PDF version), Research Affiliates’ Rob Arnott offers some interesting data on sovereign debt — data that indicates many investors are buying up bonds from the wrong countries. While investors have been pouring into U.S. Treasuries, Arnott says the U.S. — and many other developed countries — aren’t the place to be when it comes to sovereign debt. “Bond investors are lenders,” he says. “Why should we deliberately choose to lend more to those who are most deeply in debt?” Arnott measures a country’s ability to finance its debt by comparing its debt […]

Sonders: Double-Dip Still Unlikely

Charles Schwab Chief Investment Strategist Liz Ann Sonders continues to sound skeptical that the U.S. is entering the second leg of a “double-dip” recession. “Although rhetoric surrounding a double-dip recession has increased throughout the summer, we remain relatively optimistic that economic growth will remain positive (albeit low) and that from a sentiment and valuation perspective, the stock market appears relatively attractive,” Sonders (along with Schwab’s Brad Sorensen and Michelle Gibley) writes in her latest market commentary on Schwab’s web site. Sonders, Sorensen, and Gibley say that volatility will continue, but add that “alternatives to stocks are relatively unattractive,” with bond […]

Herro Goes Against Crowd, Keys on Europe

Top fund manager David Herro, who has beaten the market handily over the long haul by going against the crowd, is now keying on a couple very unloved areas of the world: Europe and Japan. While many investors are focused on hot-growth emerging market areas, Herro’s exposure to emerging markets is just 7%, SmartMoney reports. Herro tells the magazine that when a sector gets hot, “people like the story — and we avoid those.” “These days, while Herro stops short of calling emerging markets a bubble, he thinks European and Japanese blue chips are a better way to tap growth […]