Buffett Still Worried on Inflation

Warren Buffett says he’s still worried about inflation, and says, contrary to what many believe, inflation can occur even if the economy is operating with significant excess capacity. “I don’t think there could be a better Fed chairman [than Ben Bernanke], but I still worry about inflation,” Buffett tells CNBC. “He didn’t talk about this the other day, but there’s a lot of people who take the approach that because there’s excess capacity in the United States industry that you can’t have inflation because it won’t get tight.  But I can tell you that in the businesses we’re in [at […]

U.S. to Get Younger — and Older — over Next Decade

In his latest MarketWatch column, Mark Hulbert takes a look at some interesting demographic trends and predictions that could impact stock market moves over the next decade. “For years now, there has been a drumbeat from economists about the increasing proportion of the U.S. population that is in or approaching retirement,” Hulbert writes. And that is indeed a powerful demographic trend. “But the increasing proportion of the population in the below-15 cohort is a powerful trend as well, and it will have dramatic effects on the long-term health of the U.S. economy.” Using data from Ned Davis Research, Hulbert says […]

The O’Shaughnessy Method: Growth and Value

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 James O’Shaughnessy-inspired strategy, which has averaged 10.8% annualized returns since its inception nearly eight years ago, over a period in which the S&P 500 has returned 4% per year. Below is an excerpt from today’s newsletter, along with several top-scoring stock ideas from the O’Shaughnessy-based investment strategy. Taken from the April 29, 2011 issue of The Validea Hot List Guru Spotlight: James O’Shaughnessy To say that James O’Shaughnessy has written the book on quantitative investing […]

Ritholtz High on U.S. Stocks — For Now

Barry Ritholtz of FusionIQ and The Big Picture blog says he’s 90% long on stocks right now, mostly in the U.S. Ritholtz tells CNBC that a lot of his optimism is an “opportunistic trade”. He thinks a major correction is coming sometime in the future, but he says he doesn’t see evidence that it’s coming right now.

Buffett-Type Picks from North of the Border

In his latest “Number Cruncher” column for Canada’s Globe and Mail, John Heinzl takes a look at some Warren Buffett-type stocks, with help from Validea CEO John Reese’s Buffett-based Guru Strategy. “Unfortunately, Mr. Buffett wasn’t available for our little stock-picking exercise. But the folks at Validea Canada have developed a screen that emulates the Oracle of Omaha’s methods — without all the corny jokes and grandfatherly advice,” Heinzl writes. Heinzl lists the ten Canada-traded stocks that get the highest marks from Reese’s Buffett-based approach, which looks for qualities like persistent earnings growth over the past decade; low debt; and high […]