Templeton Asset Management’s Mark Mobius says the continuing use and growth of derivatives in financial markets is going to lead to another financial crisis. “There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” Mobius says, according to Bloomberg. “Are […]
Top fund manager David Herro says discipline and longer-term thinking are keys to successful investing. “You have to be grounded, first of all,” Herro tells WealthTrack’s Consuelo Mack. “You have to have a very sound investment philosophy from which to operate from. And number two, and perhaps most importantly, is you have to apply discipline. […]
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 Joseph Piotroski-inspired strategy, which has averaged 8.2% annualized returns since its inception more than seven years ago, over a period in which the S&P 500 has returned 2.0% per year. […]
While many investors dabble in commodities and currencies, Joe Rosenberg, chief investment strategist of the Loews conglomerate, says to focus on large-cap U.S. multi-national stocks. Rosenberg tells Fortune that he looks for companies that are financially sound, showing rising profits, and selling inexpensively relative to profits and free cash flow. Among the specific criteria he […]
While stocks with great growth stories often attract investors’ attention, Jim Oberweis says companies that aren’t quite as attractive but have better stock valuations can be a better investment. “As much as I love businesses with seemingly bulletproof growth stories, it is the combination of business quality, growth opportunities and stock price that really matters […]
PIMCO’s Bill Gross says he doesn’t think the U.S. will seriously tackle its deficit issues until the 2012 presidential election, and says blue-chip U.S. stocks are a “much more attractive” alternative to Treasuries based on their current yields. “It’s obvious that both Democrats and Republicans want to address the problems with spending and, yes, want […]
Value investor Mario Gabelli says he likes to buy shares of companies that are “ignored and unloved”, and those that are potential buyout targets. Gabelli also tells Bloomberg that he focuses on stocks that benefit from aging demographics, whether it be aging people or aging facilities and infrastructure.
In his latest article for Forbes.com, Validea CEO John Reese examines his Joel Greenblatt-inspired approach, which has beaten the market by about 10 percentage points per year over the past five-and-a-half years. “Greenblatt’s two-step approach is simple, but that doesn’t mean it’s easy to use,” Reese writes. “That’s because, like Warren Buffett, Greenblatt realized that […]
Top value investor Ron Muhlenkamp says big international growth stocks like Intel look attractive right now. “It is fascinating that Intel sells for just 10 times earnings,” Muhlenkamp tells Money Magazine. “Intel dominates the chip market, and its balance sheet is rock-solid. And it has a 3.3% dividend yield — that is irresistible.” Muhlenkamp also […]
Hedge fund guru Barton Biggs says the economy has slowed, but he remains bullish on U.S. stocks. “The U.S. and the global economy have clearly slowed pretty significantly,” Biggs tells Bloomberg Surveillance. “That’s arousing the bears, who believe we’re going to slip back into a long soft patch at best or maybe even a double-dip […]
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.
Kenneth Fisher says investors need to stop being so myopic, and instead focus on the bigger picture. “Markets don’t care one whit about news sooner than about 90 days from now or longer than about 30 months out. The period in between is the fretting zone,” Fisher writes in his latest Forbes column. “To hell […]
In a recent white paper, GMO’s James Montier takes an interesting look at what he says are “The Seven Immutable Laws of Investing”. The first rule, on which Montier spends the most time, invokes the late, great Benjamin Graham: “Always Insist on a Margin of Safety”. Montier writes: “Valuation is the closest thing to the […]
Economic Cycle Research Institute Managing Director Lakshman Achuthan, whose group has an impressive track record of forecasting economic trends, says global industrial growth is headed for a slowdown. But he doesn’t think another recession is coming. “There’s a downturn in global industrial growth in clear sight,” Achuthan says, according to Investor’s Business Daily. “Commodity price […]
In her latest market commentary, Charles Schwab Chief Investment Strategist Liz Ann Sonders looks at the recent commodities decline, and at what it might mean for stocks. While stocks and commodities don’t always move in tandem, Sonders says, their correlation has been high since late 2008, when the “risk-off, risk-on” trade started. “It’s been our […]