Housing market guru Robert Shiller says it’s possible that the housing market has bottomed, but that he’s not confident it has. Shiller tells FOX Business Network that there is some good momentum forming in housing prices, but that part of the recent bounce has been seasonal. Shiller says that it’s possible that bubbles are forming in some areas of the U.S. housing market, citing Phoenix and San Francisco.
While many have been clamoring for the reinstitution of the Glass-Steagall Act as a way to address some of the financial sector’s problems, Jason Zweig is skeptical. In his Intelligent Investor column for The Wall Street Journal, Zweig says that when it was in effect, Glass-Steagall wasn’t the powerhouse that many are portraying it to be. “For all of the rhapsodizing about the halcyon days of Glass-Steagall, the statute was far weaker than its advocates care to admit,” he writes. “That law did help stamp out much of the self-dealing and skulduggery that had corrupted banking in the 1920s. But it was […]
Wharton Professor and author Jeremy Siegel says a rebound in the housing market will help push GDP growth near 3% in the second half of 2012. “Housing is one of the few bright spots, but a very important bright spot in the economy,” Siegel told Bloomberg TV (hat tip to Business Insider). “When you talk about all consumer spending, and even in the investment category almost 25-30 percent is related to housing/furniture purchases, redecoration, renovation — the feeling of consumers that they’ve got a little bit of equity in their home. We’ve had some stabilization of prices … Case-Shiller has […]
Top investor Kenneth Fisher says that the bull market has a ways to go — and that large-cap growth stocks will be the place to be during the rest of the bull run. In a column for Interactive Investor, Fisher notes that in the early stages of bull markets, small-cap value picks usually lead the way. They are more economically sensitive and get pounded when fears crescendo at the end of bear markets, and then bounce back when fears subside and the bulls start running, he says. Then things change. “Later, after the bull market’s early phases, a new phase […]
While many investors think uncertainty has risen to unprecedented levels, changing the way they should invest, they need only look at some of Warren Buffett’s earliest letters to investors to see that they may be wrong, writes MarketWatch’s Jonathan Burton. “I think you can be quite sure that over the next ten years there are going to be a few years when the general market is plus 20% or 25%, a few when it is minus on the same order, and a majority when it is in between. I haven’t any notion as to the sequence in which these will […]