El-Erian on Sandy’s Economic Impact

Just what impact will Hurricane Sandy end up having on the economy? PIMCO’s Mohamed El-Erian recently tackled that question in a piece for CNBC.com. One of El-Erian’s key points was that the government likely won’t be able to play its usual role in the recovery, with more being required of the private sector. “In more […]

Icahn Finding Value in Netflix

While Netflix shares have been pummeled over the past year-and-a-half, hedge fund guru Carl Icahn is betting on them to rebound, perhaps due to Netflix’s attractiveness as a takeover target. In a regulatory filing, Icahn announced that he has acquired nearly 10% of the firm. “Netflix may hold significant strategic value for a variety of significantly […]

What Bogle Sees For Stocks & Bonds In The Next Decade

Vanguard Founder Jack Bogle says he expects stocks to earn real returns of about 4.5% per year for the next decade, and bonds to earn virtually no real return. Bogle divides returns into two categories: investment returns, which are determined by the market’s dividend yield and corporate earnings growth, and speculative returns. Today’s dividend yield is around […]

Grantham Keeping Head Down Amid Headwinds

In an interview with Charlie Rose for Bloomberg BusinessWeek, GMO’s Jeremy Grantham says he’s going to be quite cautious in 2013. “I am going to be careful, particularly for the first half of next year,” Grantham says. “Great brands of blue chips are not so bad in the U.S. Emerging countries are about fair price. […]

PIMCO Boss: Years of Balance Sheet “Rehabilitation” Ahead

PIMCO Chief Operating Officer Doug Hodge says that monetary easing alone isn’t enough to repair the U.S. economy, and that America is “in for a slow period of balance sheet rehabilitation” that will take years. “What we’ve learned though is that monetary policy alone, it’s necessary but it’s not sufficient,” Hodge tells FOX Business Network. […]

Oberweis: Follow Ben’s Lead

Newsletter guru Jim Oberweis says that investors can make some nice profits by following the Fed. “Government policies shape markets, turn winners into losers and, unfortunately, can distort the invisible hand of the market,” Oberweis writes in his latest Forbes column. “Only a fool would ignore the moves of Uncle Sam, particularly with government spending higher than […]

Stocks For An Obama — Or Romney — Presidency

In his latest article for Nasdaq.com, Validea CEO John Reese says that investors shouldn’t let speculation about who is going to win the Presidential election affect their investment decisions. “So many factors go into the economy and market that extend far beyond the reach of the Commander-in-Chief,” writes Reese. “For example, the stock market thrived […]

Top Fund Manager: Flight to Safety Overdone

Oakmark’s Clyde McGregor, who manages several funds with strong long-term track records, says his equity/income fund is tilted strongly toward equities, with fixed income offering few good opportunities.  McGregor says his Oakmark Equity & Income Fund is 70% invested in stocks right now, near its maximum of 75%. “It’s very difficult to do anything creative […]

Forester Cautious and Defensive

Fund manager Tom Forester released his third quarter commentary earlier this month, and his message was one of caution. “As risks have increased, we have increased our protection,” Forester wrote. “If risks subside or are priced in, we will gladly reduce our protection. But until the market more fully reflects these risks, we will remain […]

Where Arnott Sees Value

Rob Arnott of Research Affiliates and PIMCO is finding value in emerging market stocks and high-yield bonds. Arnott tells Brett Arends of The Wall Street Journal that emerging-market stocks have lagged those in the U.S. over the past five years, and are now considerably more attractive than U.S. stocks. And, while high-yield bond yields have […]

Hussman: Don’t Believe the Valuation Numbers

Fund manager John Hussman remains quite bearish on the market, saying that stocks are showing signs of being in the “exhaustion” part of a bull market. “We presently have an overvalued, overbought (intermediate-term), overbullish market featuring a variety of syndromes that have typically appeared in the ‘exhaustion’ part of the market cycle: elevated valuation multiples […]

Herro: Value Is In Stocks

Oakmark’s David Herro says global equities remain a “good asset class”, and thinks that a Mitt Romney presidency would mean good things for the U.S. economy. Herro tells Bloomberg that a decrease in regulation would mean less uncertainty for Corporate America under Romney, which would boost the economy. He also says valuations of equities are […]

Eveillard: Gold Still Looks Good

Top value investor Jean-Marie Eveillard says that despite its big gains in recent years, gold “cannot be overvalued” in the current environment. “We have, so far, a minor correction,” Eveillard tells King World News. “Had gold become too popular at close to $1,800? I don’t think so, but the thing about gold, you always have […]

Sonders: U.S. Economy Turning, Healthier Market Should Follow

Charles Schwab Chief Investment Strategist Liz Ann Sonders says the U.S. economy appears to have hit some inflection points, which means good things for stocks. “I believe it’s important to look for inflection points, not to wait until the ‘all’s clear’ bell is rung,” Sonders writes in her latest commentary on Schwab’s website. “By definition, […]

Pharma Firms for the Gurus

Validea CEO John Reese says several pharmaceutical stocks are catching his guru-inspired strategies’ eyes right now. “If the elections are giving you a tummy ache, heartburn or other malady, perhaps you need some pharmaceuticals,” Reese writes for RealMoney.com. “I am referring to pharmaceutical stocks, several of which are good investment opportunities at the moment.” Reese […]

Bogle: Stop Gambling and Invest

In a recent interview, Vanguard founder Jack Bogle said investors should “get out of the casino”, and practice real investing — not speculative trading. “Get out of the casino, own Corporate America and hold it forever,” Bogle, long a proponent of buy-and-hold index funds, said during ‘The Big Interview’ on MoneyLife with Chuck Jaffe, according […]

Berkowitz Still Going Against The Crowd On Financials

Top fund manager Bruce Berkowitz remains high on beaten-down financial stocks, saying that many have improving business trends and balance sheets and extremely cheap shares. Berkowitz tells WealthTrack’s Consuelo Mack that he started buying “systemically important companies” at huge bargains after the government recapitalized them, and after busines trends were recovering. Many were priced below liquidation […]

Gross Talks Stocks, Bonds, Gold & Inflation

PIMCO bond guru Bill Gross says that both stocks and bonds are a bit “bubbled” because of the Federal Reserve’s policies, but that high-quality dividend-paying stocks should perform better than bonds over the long haul. Gross tells CNBC’s Futures Now that he also thinks gold and real assets are offering good long-term protection against inflation, […]

Mobius: China and Europe Fears Overwrought

Emerging markets guru Mark Mobius says he thinks people are too pessimistic on China and Europe. “If you look at independent statistics as related to China — for example, exports from the West, from Japan, from Germany to China — you will see that the growth rates are very healthy,” Mobius tells Fortune. He says […]

Wien Sees Reasons for Optimism

Blackstone Advisory Partners’ Byron Wien predicted before the year began that the S&P 500 would rise above 1,400 in 2012. Now that it has, he sees it climbing even higher. Wien tells Barron’s that he thinks the index will climb above 1,500 by year-end. He thinks the U.S. economy is doing better than many think. […]

Greenblatt Talks Market Valuation, Value Investing, and Much More

In a wide-ranging interview with the Columbia Business School’s Graham & Doddsville newsletter, hedge fund guru Joel Greenblatt says the stock market is in the “87th percentile towards cheap” right now, and discusses a myriad of aspects of his investment approach. Greenblatt says that, using the market-cap-weighted free cash flow yield of the Russell 1000 […]

O’Shaughnessy: Block Out The Noise

James O’Shaughnessy says to block out the noise and listen to what history has to say about where the stock market is headed — upward. “We need perspective on the markets, and that’s something we sorely lack today,” O’Shaughnessy told MarketWatch after giving a presentation at The Big Picture Conference. He says that just to match the worst […]