Ritholtz’s Investing Handbook

In his latest Washington Post column, top strategist Barry Ritholtz lays out some of the most important “rules of investing” that he has learned over the years. Among the key tenets Ritholtz lays out: Cut your losers short and let your winners run: Ritholtz calls this “perhaps the best investing advice ever”. He says letting winners run “allows compounding to occur, gives you the benefit of time and keeps your transaction costs, fees and taxes low”, while cutting your losers short “forces you to be humble and intelligent. It rotates you away from the sectors and stocks that are not […]

More Gurus, More Profits

In his latest article for Nasdaq.com, Validea CEO John Reese looks at the benefits of investing in stocks that get high marks from more than one of his guru-inspired strategies. “What’s better than one investment guru?” asks Reese. “Two investment gurus, of course.┬áThat’s what I’ve found over the years using my Guru Strategies, each of which is based on the approach of a different investing great. When one of these models is high on a stock, it bodes well for those shares. But when two or more of these guru-inspired strategies like a particular stock, it can really mean good […]

Gross: Follow the Fed and ECB

Bill Gross says PIMCO’s strategy is pretty simple: Buy what the Federal Reserve and other central banks are buying. “We continue to anticipate what the Fed is buying,” Gross recently told CNBC. “They’ve told us they will buy $40 billion to $70 billion of agency mortgages every month until the cows come home. It pays to own these mortgages even though they’re overvalued.” Another area PIMCO is looking, thanks to central banks: Spanish and Italian bonds. “[The European Central Bank] told us they are going to buy Spanish and Italian 1- to 3-year debt should those countries apply for a […]

Is the Bond Bull Over? Maybe Not

Has the bond market reached a peak? Not if history is any guide, says MarketWatch’s Mark Hulbert. Hulbert recently looked at the average bond market exposure for bond market timers he tracks at Hulbert Financial Digest. He found that those with the best track records on average have an 89% exposure to the bond market; those with the worst track records on average had -42% exposure. “The more typical pattern at market tops is for the spread between the consensus of the best and worst timers to begin shrinking — either because the top performers have reduced their recommended exposure […]

Mobius High on Coal

Templeton Emerging Markets Group’s Mark Mobius says he’s bullish on Chinese coal companies. “These companies are not only mining but also producing power and the demand for power is insatiable in China and everywhere else in the world,” Mobius tells Bloomberg. His funds currently hold shares of coal companies Shenhua, Yanzhou Coal Mining Co., and China Coal Energy Co. Chinese coal companies have been rebounding from their cheapest levels on record, Bloomberg reports, and Mobius thinks some may be ready to expand. “The slowdown that we’ve seen in global markets means there’s an opportunity for these companies to buy mines […]