Look Beyond Europe News, Sonders Says

Charles Schwab’s Liz Ann Sonders — whose calls on the start and end of the “Great Recession” proved quite accurate — warns against hyperfocusing on Greece’s debt problems. “Even the broader European focus has largely seemed to overshadow developments in the United States, which remains the world’s largest economy,” Sonders writes along with Brad Sorensen […]

Reese on Momentum and Value Working Together

In his latest article for Canada’s Globe and Mail, Validea CEO John Reese says that, while many of history’s greatest investors have been value-focused strategists, momentum can also be a critical part of successful approaches. “In fact, looking for stocks with good price momentum can be a big boost to returns — particularly during certain […]

Fisher: The Economic Data Is Better than Many Think

Kenneth Fisher says the fact that GDP growth nearly doubled in the U.S.’s third quarter is far from the only positive economic sign out there — even though the media continues to focus on the negative. In a post on Forbes.com, Fisher points to a number of economic figures, including improving manufacturing numbers in the […]

Biggs: “Rally Going to Continue for a While”

Hedge fund guru Barton Biggs, who had been reducing equity exposure late in the summer months, has recently reversed course and has continued to up his exposure since the announcement of the new plan to stem Europe’s debt crisis.  “This morning, all of the wise men of Europe and the economists are very negative about […]

Zweig on the “Optimism Bias”

On the Wall Street Journal’s “Total Return” blog, Jason  Zweig highlights research that indicates human beings have an “optimism bias” — that is, we learn more from our successes than we do from our failures. And that, he says, has major implications for investors. Zweig says a new study, performed by a team of neuroscientists in […]

Romick Finding Value in Large-Caps

Top-performing fund manager Steven Romick, who often targets smaller stocks, is finding that the current market environment has larger stocks looking attractive because of their valuations. “We think owning good, large-cap, global, and growing businesses are a good place to invest today,” Romick tells Morningstar. “Those of which cannot adequately reinvest their capital should pay […]

De Vaulx Likes Japanese & European Firms

Top value investor Charles de Vaulx is high on Japanese stocks and stocks of European companies with global exposure. De Vaulx tells Bloomberg that there are a lot of strong European firms that are “not that Euro-centric”. He also discusses why he’s putting a lot of his money into France, and why he thinks the […]

The Strategy Behind Buffett’s Success

In an interview with CNBC, Validea CEO John Reese talks about his Warren Buffett-inspired strategy, and some stocks it’s high on right now. Reese explains how his model uses Buffett-based criteria to pick stocks, including earnings persistence — it looks for firms that have a 10-year history of consistently upping annual earnings. He also talks […]

Election Year A Bullish Sign? Maybe Not

Contrary to popular belief, Mark Hulbert says the notion that stock market returns are strong in the years of presidential elections is wrong. In a recent MarketWatch column, Hulbert comes to that conclusion after examining the Presidential Election Year Cycle. “The implication of this theory is that, immediately after assuming office, presidents swallow whatever economic […]

Hedge Fund Chief: Asia Offers Big Opportunities for Value Investors

Michael van Biema, whose value-focused firm’s funds garnered several InvestHedge awards in 2010, says the Asian markets are offering particularly good opportunities for value investors. “They’re getting really, really cheap again, which of course, we like,” van Biema tells Forbes.com in reference to Asian stocks. “And you get a huge tail wind of growth. The […]

Ritholtz: Government Should Focus on Infrastructure

Barry Ritholtz says that America needs to undertake a major infrastructure repair and rebuilding program, which would stimulate the economy and provide a number of other benefits. “We have allowed the transportation grid to get old and out of shape,” Ritholtz writes in a Washington Post op-ed. “Our interstate highway system is in disrepair; our […]

Oberweis: In Fearful Times, Look to Small-Caps

While investors often rush into larger blue-chip stocks and Treasury bonds when market fears are high, newsletter guru Jim Oberweis says that’s often the wrong move to make. “In my experience, some of the best gains on a rebound are seen in high-growth stocks that are usually too expensive to pass our valuation requirements,” Oberweis […]

Guru-Inspired Picks from the Ripening Farming Industry

Profits in the agriculture industry are reaching all-time highs, and in his latest Forbes.com article, Validea CEO John Reese offers some ideas for how investors can profit from the surge. “This year, the Department of Agriculture is forecasting record profits for the farming industry, with net farm income topping the $100 billion mark for the […]

Arnott: We’re In Recession; Emerging Markets Attractive

Rob Arnott of PIMCO and Research Affiliates says there are “pretty high odds” that the economy is in the second dip of a double-dip recession, and thinks emerging market stocks are looking attractive. Arnott tells MarketWatch that he thinks the second dip into recession likely started around June, and that buying opportunities in the markets […]

GDP Fixation Is “Silly”, Fisher Says

Investors will no doubt be eagerly awaiting the third-quarter gross domestic product readings in the coming weeks. But top investor Kenneth Fisher has advice for them: Ignore it. “GDP calculations are useful — to a degree. But they’re government-compiled, hence wonky, based on inherently flawed assumptions and surveys,” Fisher writes in an Interactive Investor column. […]

Paulsen On Our “Crisis-Phobic Culture”

Wells Capital Management’s James Paulsen says he thinks we are in the midst of a “crisis-phobic culture”, and that U.S. investors are putting too much emphasis on what happens in Europe. Paulsen tells CNBC that he thinks the U.S. economy grew at a pace of about 3% in the third quarter, and that the key […]

Bearish Case “Short of Substance”, Birinyi Says

Laszlo Birinyi, who warned about financial stocks in the summer of 2008 and turned very bullish on the market not long after it bottomed in 2009, says he isn’t buying the bears’ arguments today. “I think the bearish case is short of substance, the defensive thesis suspect and that selling has been overdone,” Birinyi writes […]

Greenblatt Seeing Plenty of Value

Hedge fund guru Joel Greenblatt thinks the next year is setting up to be a good one for stocks. “Not only is the market cheap, but the value opportunity is really nice right now,” Greenblatt said at the Value Investing Congress in New York, according to The Wall Street Journal. “Greenblatt … opened the conference […]

Fisher: Election Year A Bullish Sign For Stocks

In his latest piece for Forbes, Kenneth Fisher says he thinks President Obama will be tougher to unseat than many Republicans seem to think. But regardless of who wins, he says, the fact that we’re heading into an election year bodes well for stocks. “Of the 21 election years since the S&P index began, 17 […]

The Graham Approach: How A 60-Year Old Strategy Still Scores Big

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 Benjamin Graham-inspired strategy, which has averaged annual returns of 14.4% since its July 2003 inception vs. 2.3% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring […]

Yacktman: Big Blue Chips As Cheap As He’s Ever Seen

Top fund manager Donald Yacktman says that in his 40-plus-year investment career, he has “never seen so many large, profitable businesses selling on a relative basis to other things as cheaply as they do today.” Yacktman recently told Bloomberg that PepsiCo and News Corp. are two of the most attractive large-caps he’s finding right now. […]