Top Forecaster: Real GDP Back to Pre-Recession Levels

While few have noticed, the U.S. has now reached pre-recession gross domestic product levels, says one top strategist who is bullish heading into 2011. In a recent MarketWatch column, Mark Hulbert says Norman Fosback, editor of Fosback’s Fund Forecaster, has extrapolated U.S. GDP data and found that, “as of this moment, we are virtually right […]

Fisher: 2011 a Year of the “Alpha Bet”

Kenneth Fisher says 2011 is “likely to be very frustrating for bulls and bears alike”. Fisher says the last few years have been years of betting on beta — broad market and economic trends. In 2011, however, he thinks investors will need to make good “alpha bets” — i.e., pick the right stocks or sectors […]

Sonders Optimistic on 2011

Charles Schwab Chief Investment Strategist Liz Ann Sonders says she’s optimistic on both the economy and stock market heading into 2011. Sonders tells WNYC News that she thinks people will be “pleasantly surprised” by the rate of U.S. gross domestic product growth in the coming year. She says she expects a significant pickup in job […]

How to Create Stimulus Without Adding Debt

Yale economist Robert Shiller says the U.S. shouldn’t forget that it is possible to provide more economic stimulus without actually adding more debt. In an op-ed piece for The New York Times, Shiller discusses the “balanced-budget multiplier” theory, which maintains that national income is raised, dollar for dollar, with any increase in government expenditure on […]

Bogle on Fundamentals vs. Emotions

Vanguard founder Jack Bogle recently offered his take on where the market and economy are headed, saying that he thinks stocks should gain about 7% per year in the next decade. Bogle tells Forbes‘ Steve Forbes that while emotions drive the market in the short term, fundamentals drive it over the long term. And right […]

Dorfman: Time to Add Risk

Bloomberg columnist and money manager John Dorfman says it’s time for investors to take on more risk. Dorfman tells Bloomberg that investors shouldn’t let the lingering fears from the 2008 crisis impact their investment decisions going forward. He also talks about some of his top stock picks heading into the new year.  

Siegel Warns on Bonds

Author and Wharton professor Jeremy Siegel says that bond investors should be very careful right now. “Anyone that has money in bond funds has to be very cautious” of losses in both the short and long term, Siegel tells The Wall Street Journal. He says that bond buyers are preparing for yesterday’s stock market crash, […]

Forester Sees “Yellow” Light for Market

Fund manager Tom Forester says he sees the market flashing a “yellow light” rather than a green or red one, and he’s focused on healthcare and consumer staple stocks. “Our cash position is around 18%, which for us is cautious, but not extremely so,” Forester tells Morningstar.com. “It is a yellow light instead of a […]

Reese: Do Hot Holiday Gifts Make for Strong Stocks?

In his latest article for Canada’s Globe and Mail, Validea CEO John Reese takes a look at the stocks of some of the firms behind this Christmas season’s hottest gift ideas. “The holiday gift-buying season has companies pushing their newest and most eye-catching toys and gizmos and gadgets, with consumers lining up to judge them […]

Montier: Don’t Believe the New Normal Hype

The “New Normal” concept has gotten a ton of attention in the financial and investment worlds in the past couple years. But in a new paper, GMO’s James Montier says not to believe the hype. In a paper posted on GMO’s web site, Montier says that for some economic indicators, there may indeed be a […]

Guru Strategy Rating Changes: TXN Rising, PRU 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. Among the big names: Texas Instruments and Prudential Financial.

Top Fund Manager Talks Strategy

While most long-only equity funds have struggled in the past decade, Donald Yacktman’s two funds have returned 12.4% and 12.9% per year, respectively. And in a recent interview with The Wall Street Transcript (click here for a PDF) Yacktman and his two co-managers discussed how they’ve been able to do so well during such a […]

How to Avoid “Closet Indexers”

While most mutual fund investors turn to funds that they hope will beat the broader market, a new study shows that a big portion of mutual fund managers are “closet indexers” — that is, they do little to distinguish their funds from passive index funds. The study, performed by Antti Petajisto, visiting assistant finance professor […]

Broader Outlook Gloomy, but You Can Still Make Money, Hussman Says

Fund manager John Hussman says the broader market is priced to return significantly less than its historical average for the next decade — and says the government’s huge bailout of financial firms was not, as many believe, the reason the U.S. avoided a redux of the Great Depression. In his latest commentary, Hussman lists 12 […]

Paulsen: Recovery Is Sustainable

Wells Capital Chief Investment Strategist James Paulsen says that, while economic problems remain, he sees more improvement for the economy in 2011, and more gains for the market. Paulsen tells Bloomberg that he thinks the consensus will shift in the coming year to a generalized acceptance that the recovery is sustainable. He expects job creation […]

Hulbert: Sentiment Jump Cause for Concern

Newsletter tracker Mark Hulbert says market sentiment has gotten “disturbingly high”, which could mean trouble for the market, in the shorter term, at least. “The Wall of Worry that existed as recently as earlier this month has now largely disintegrated — and given way to the veritable Slope of Hope on which market declines typically […]

Sonders: Falling Correlations a Good Sign; Sees Front-Loaded 2011 Gains

Charles Schwab Chief Investment Strategist Liz Ann Sonders sees strong, front-loaded gains for the market in 2011, and says that fundamentals should become more important with correlations between asset classes beginning to fall. “Correlations are starting to come down. It’s a function of where we are in the economic cycle and the market cycle,” Sonders, […]

Kass Turns More Bearish

Columnist and money manager Doug Kass, whose track record of market calls in recent years has been very strong, says a variety of factors have him turning more bearish. “Within the context of an overbought and overloved equity market, the rapidity of the rise in interest rates is but one of the accumulating factors that […]