Paulsen: Buy What Others Are Avoiding

Wells Capital Management Chief Investment Strategist James Paulsen says U.S. consumers and the U.S. economy are being more resilient than many think. Paulsen also tells Bloomberg that he’s high on industrial stocks, technology stocks, and emerging market stocks, which he thinks have been beaten down too far by investors.  

How the AAA Firms’ Stocks Stack Up

In his latest column for Canada’s Globe and Mail, Validea CEO John Reese takes a look at how some companies with top credit ratings look as possible investments. Following the U.S.’s credit downgrade by Standard & Poor’s, S&P also downgraded several insurance companies tied to the U.S. markets, Reese notes. “The downgrades and changes in outlook were the latest part of a lengthy trend,” he says. “Back in the early 1980s, about 60 U.S. companies had triple-A credit ratings; by 2000, the number was down to about 15. Today, only four remain: Microsoft Corp., Exxon Mobil Corp., Johnson & Johnson, […]

Stocks Pricey and Risky — But Shouldn’t Be Avoided, Shiller Says

Yale Economist Robert Shiller says he thinks stocks “look highly priced, but not super highly priced”. In an interview with Consuelo Mack on WealthTrack, Shiller says the market’s 10-year price/earnings ratio (which averages earnings over the past ten years) has historically averaged about 15; lately, it’s been around 20. But Shiller says it’s “not too disquieting” a number, and that, given the long-term success of stocks, investors shouldn’t avoid them. “I think that one might make a substantial investment in the stock market now — but with full knowledge [that] it shouldn’t be everything, because it is risky,” he says. […]

Top Fund Manager Putting Cash To Work

Steven Romick, who has been one of the U.S.’s top mutual fund managers for over a decade, says he’s tilting his portfolio toward larger firms with international, non-dollar exposure. Romick tells Barron’s that he’s been buying stocks in the past few weeks as markets have struggled. But, he adds, “this isn’t a time to put all our chips on the table. We’ve increased equity exposures, because if you have a fair amount of inflation coming down the road, you don’t really want to be all in cash. If you have deflation, cash isn’t such a bad thing. We think longer-term, […]

Mobius: EMs Offer Safety — If You Diversify

Templeton Asset Management’s Mark Mobius continues to say that emerging markets should be a safe haven for investors, but he stresses that a diversified approach to EMs is key. “A whole picture globally is that emerging markets will be the safest play,” Mobius tells The Economic Times. “Why? Because they are growing at three times faster than the developed countries, their debt to GDP levels are lower, their foreign exchange reserves are higher.” But, he adds, “you cannot really pinpoint whether it is going to be Brazil or Turkey or Thailand” that lead the way. “You have got to be […]