Why Corporate Cash Isn’t Helping Investors

Investors have been hearing for some time now about the hordes of cash being stashed on U.S. corporate balance sheets. In a recent column, The Wall Street Journal’s Jason Zweig explains a big part of why the cash stockpiles are so high — and why that cash might not be benefiting investors anytime soon. “U.S. […]

Dreman Positions Portfolio for Inflation

David Dreman says stocks are generally cheap, but he’s still expecting that the U.S. will be jolted by a “really major dose of inflation” at some point down the line. “I’m not talking about at present — this could be two, three years out,” Dreman tells Forbes.com. “But I think we’re going to have a […]

Shiller Sees “Substantial Risk” in Housing

Yale Economist Robert Shiller says he’s more worried about the housing market than colleague Karl Case. Shiller, who told reporters that he sees a “substantial” chance that real home prices will drop another 15% to 25%, discusses his outlook on Bloomberg. Shiller also talks about the broader economy, and says that the turmoil in the […]

Yacktman Still Finding Value

While the market is up close to 100% over its March 2009 low, top value manager Donald Yacktman says he’s still finding bargains. “We have bought Apollo Group — a private universities company — and H&R Block, which does tax preparation work in the US,” Yacktman tells the Financial News. “While the market is a […]

Case Talks Housing Market

Karl Case, co-creator of the S&P/Case-Shiller housing indices, talks about the recent housing data with Bloomberg. Case says it now appears the upturn in the housing market last year was a result of government subsidies. He discusses the factors impacting the market, and says that, while the market has been struggling, there are signs that […]

Berkowitz Talks Financials, Europe, and His Mistakes

In a lengthy joint interview with Advisor Perspectives and GuruFocus.com, Morningstar Fund Manager of the Decade Bruce Berkowitz offers his take on the market and several of his main holdings. Berkowitz, who went heavy into financial stocks after the financial crisis, says he remains confident in his financial holdings. “Loans created and underwritten since 2009, […]

Romick Keys on Large Caps, Cautiously

Top fund manager Steven Romick says large-cap stocks are offering better values than other options, and is positioning his portfolio to weather a pullback. “Large-cap companies are a much greater value, certainly than bonds,” Romick tells the Los Angeles Times, The Times says Romick has about 60% of his portfolio in stocks, “dominated by big […]

Top Fund Manager: Rethink International Investing

Mark Headley, who produced a strong track record with the Matthews Pacific Tiger Fund, says many American investors don’t have a good approach to international investing. Headley tells WealthTrack’s Consuelo Mack that while investors tend to take a solid long-term approach when it comes to U.S. stocks, they take a much more “flavor-of-the-month” approach to […]

Oberweis Looks to Software Firms

Newsletter guru Jim Oberweis says he’s finding value in software firms that have competitive “moats”. In his latest Forbes column, Oberweis says companies with extremely predictable earnings and a high growth rate command higher price/earnings ratios from investors. He uses three criteria to assess a company’s future earnings potential: Are revenues recurring? Does the company […]

Doll Says Signs Point Toward Buying Opportunity

With the economy in “reasonable shape” and unemployment falling, Blackrock’s Bob Doll says now may be the time for those still waiting on the sidelines to get back into stocks. “We’ve escaped from the brink,’’ Doll said at a recent Fort Lauterdale conference, the Miami Herald reports. “In our view, for now, the economy is […]

Rodriguez: No Time to Lose on Fiscal Reforms

Top fund manager Bob Rodriguez of  First Pacific Advisors says the U.S. needs to get is financial house in order — and soon. “We need significant fundamental reductions in expenditures at the Federal level this year because they’re not going to happen in 2012, which is an election year,” Rodriguez, back from his year-long sabbatical, […]

Rogers: “Mountain” of Corporate Cash to Help Market

In his latest Forbes column, John W. Rogers Jr. says that while pessimism remains in the market, he’s generally upbeat. “I am optimistic about the economy and the stock market in 2011 — although my expectations are more tempered than before,” Rogers writes. “The management teams I talk to every day have real conviction that […]

Cohen Talks Market, Strategy in Rare Interview

Hedge fund guru Steven A. Cohen of SAC Capital rarely gives interviews. But he recently spoke as part of a conference sponsored by ISI, and, while the conference was closed to the media, The New York Times’ DealBook has a recap using reports from several people who were in the audience. Cohen described the current […]

Arnott: Now Not Time to Add Risk

Research Affiliates’ Rob Arnott says the U.S.’s debt problems may not come home to roost in the short term, but they have him very concerned about the long term. “I think there’s a dislocation because the market is priced as if things are back to normal, and the simple fact is that they’re really not,” […]

Buffett: It’s All About Pricing Power

In a recently released interview with the Financial Crisis Inquiry Commission, Warren Buffett offered an interesting look into what he looks for in his investments. “The single most important decision in evaluating a business is pricing power,” Buffett said, according to Bloomberg. “If you’ve got the power to raise prices without losing business to a […]

Guru Strategy Rating Changes: JNJ on the Move

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.

Top Manager: Europe Better than You Think

Top fund manager Philippe Brugere-Trelat says investors are underestimating Europe’s ability to handle the debt problems facing many Eurozone countries. Brugere-Trelat tells WealthTrack’s Consuelo Mack that he likes companies that are based in Europe but which derive a lot of their revenues from other places. Such firms’ shares have been punished because of the Europe-related […]

Why The CAPE Ratio Isn’t A Silver Bullet

The “CAPE” Ratio — or Cyclically Adjusted Price/Earnings Ratio — has gained attention in recent years, and many commentators have recently pointed to the ratio as a reason that stocks are overvalued. (The current CAPE of almost 24 is about 50% above the long-term average of about 16.) But is the CAPE level in and […]

Birinyi: It’s a Legitimate Bull

While many cynics say that the stock market’s bull run will soon end, Laszlo Birinyi sees it as having quite a ways to go. “This bull market has the strongest start of any in history,” Birinyi, the founder and president of Birinyi Associates, says, according to MarketWatch. “When you have a very sharp rise in […]

Grantham on Why Bubbles Matter

In the second half of his year-end letter, GMO’s Jeremy Grantham takes a look at numerous asset bubbles throughout history, warning investors to ignore bubbles at their own peril. “Responding to the ebbs and flows of major cycles and saving your big bets for the outlying extremes is, in my opinion, easily the best way […]