Slow Growth Here To Stay, Says Grantham

GMO’s Jeremy Grantham says those waiting for the U.S. to return to the 3%+ growth rates it has averaged over the past hundred years are going to be disappointed. “The U.S. GDP growth rate that we have become accustomed to for over a hundred years … is not just hiding behind temporary setbacks,” Grantham writes […]

Yacktman Talks Strategy

As 2013 approaches, top fund manager Donald Yacktman is focusing on high-quality stocks, as well as some much-maligned contrarian plays. Yacktman tells Forbes that he likes stocks with high returns on assets, which generally means that the businesses have low capital requirements, nice market share, and the ability to fare well in good times or […]

Face Your Fiscal Cliff Fears

Validea CEO John Reese says that investors who are worried about the fiscal cliff shouldn’t bail on stocks. “History shows that even if we do go off the cliff, the consequences might not be as dire as many expect,” Reese wrties in his latest Forbes.com column. “A recent study by O’Shaughnessy Asset Management, the firm […]

Do Confidence Gains Mean More Market Gains?

Consumer confidence remains tepid but has been rising, recently hitting its highest level in four years. Is that good news for stocks? MarketWatch’s Mark Hulbert says no. Hulbert analyzed three decades worth of confidence data and stock returns, and found that the biggest monthly jumps in confidence tended to be followed by sub-par stock returns, […]

Shiller Doubtful of Housing Recovery

Yale housing guru Robert Shiller says he’s still not convinced the housing recovery is real. Shiller tells CNBC that some 10 million homeowners are still underwater on their mortgages, and many will end up in foreclosure. Those foreclosures will add inventory to the housing market, he says, and economic risks at home and abroad are […]

Buffett: Enact Minimum Tax for Wealthy Now

Warren Buffett says Congress should enact a law establishing a minimum tax rate on the wealthy right now. In an op-ed piece for The New York Times, Buffett disputes the claim that higher tax rates on the rich discourages investment. “Between 1951 and 1954, when the capital gains rate was 25 percent and marginal rates […]

Fisher’s Best 2013 Buy

Forbes’ Kenneth Fisher says his top stock to buy in 2013 is pharma giant Pfizer. “It has near endless top-notch brand names, and a stream of new products will capture growth from an aging developed-world demographic plus new emerging middle classes overseas — all wrapped in a classically cheap stock,” Fisher says for the 2013 […]

Paulsen Sees Signs of Solid Growth

Wells Capital Management’s Jim Paulsen sees a number of positive signs for the U.S. economy. Paulsen tells Bloomberg TV that third-quarter growth may have been around 3%, and that a number of factors — housing, job creation, and lending activity among them — are providing the economy with a boost. He sees growth coming in […]

Gross Talks Debt, Asset Allocation

PIMCO’s Bill Gross says that if the U.S. doesn’t reverse its big deficits and rising debt, it “could resemble Greece within a decade.” In an interview with U.S. News & World Report, Gross also says he doesn’t think the “New Normal” will end anytime soon. “Don’t think that anytime soon we’re going back to the […]

Chemical Reactions for the Gurus

In his latest column for Nasdaq.com, Validea CEO John Reese takes a look at some chemical industry stocks that are attractive right now. “Right now, chemical manufacturers have a couple major factors working in their favor,” Reese says. “First, there is the rise of ‘fracking’ in the U.S., which has made natural gas more abundant […]

Buffett on the Fiscal Cliff

Warren Buffett says that even if the U.S. goes over the “fiscal cliff”, he doesn’t think it will lead to recession. “I don’t think that’s going to happen,” Buffett tells CNNMoney. He says that even if it takes a couple months after the New Year for Congress and the President to reach a “cliff” deal, […]

This Recovery Isn’t Different, Say Reinhart & Rogoff

While some have argued that the U.S. economic recovery has been sub-par, Professors Carmen Reinhart and Kenneth Rogoff — whose research into the aftermaths of financial crises may be the most significant every performed — disagree. In a recent column for Bloomberg.com, Reinhart and Rogoff say “the aftermath of the most recent U.S. financial crisis […]

Guru-Inspired Picks from a Resilient Sector

In his latest column for Canada’s Globe and Mail, Validea CEO John Reese says he’s finding lots of opportunities in the resilient consumer sector. “The 2008 stock market crash, the bursting of the housing bubble and the Great Recession were supposed to have given American shoppers a debilitating one-two-three punch that would keep them down […]

Fisher: Obama Isn’t A “Market Killer”

Worried that President Obama’s re-election will be bad news for stocks? Top strategist Kenneth Fisher says that idea is hogwash. “Nonsense,” Fisher writes in discussing the Obama re-election fears in a column for Interactive Investor. “There is scant clear evidence either party is materially better for shares in the long-term. But there is a lot […]

Sonders: Don’t Sell Housing Rebound Short

Charles Schwab’s Liz Ann Sonders says that a rebounding housing market will have more of an impact than many believe it will have on the economy. “People are still underestimating the impact that this is going to have,” Sonders said at the Schwab Impact 2012 conference, CNBC reports. “What people are underestimating is the ripple […]

O’Shaughnessy Likes Strong Dividend Stocks

While quantitative guru James O’Shaughnessy supported Mitt Romney in the race for the Presidency, he says stocks should still fare well going forward. “The conditions remain relatively good for stocks,” he told Yahoo! Finance’s Daily Ticker the day of the election. “I think [who wins] matters but it matters a lot less than many people […]

El-Erian On How To Handle The Fiscal Trouble

PIMCO’s Mohamed El-Erian says policymakers trying to address the country’s fiscal problems should focus on getting businesses and individuals to put the “ton” of cash now sitting on the sidelines to use, both via investment markets and capital spending. “If you make that your objective, you’re going to move not only just on fiscal reform but […]

Romick on Why Bernanke Needs to Go

In a recent letter to FPA clients, top fund manager Steven Romick says the Federal Reserve’s easy money policies are having and will likely continue to have troubling effects on the economy, and makes the case for the replacement of Fed Chairman Ben Bernanke. In the letter (H/T to Sara Wolinsky for posting the the […]

Stattman Still Likes Equities

Top fund manager Dennis Stattman of Blackrock says that he thinks equities are the best place for investors to be right now. Stattman tells Bloomberg that he would spread his stock allocation over many countries across the globe. He also says he’s leery of bonds. Stattman talks about the looming “fiscal cliff”, and its potential […]

The Zweig Model: A Conservative Growth Strategy

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 Martin Zweig-inspired strategy, which has averaged annual returns of 7.0% since its July 2003 inception vs. 3.6% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring […]

Fisher: Don’t Let the Election Scare You Out of the Market

While the market has stumbled following Tuesday’s elections, top strategist Kenneth Fisher says investors shouldn’t get their market outlooks tied up with election results. “Don’t believe too much in your political ideology relative to how the economy and markets will do,” Fisher writes in his latest Forbes column. “Most folks make that mistake. Those whose side […]

Ritholtz: Day-to-Day Market Moves Just “Noise”

Barry Ritholtz of FusionIQ and The Big Picture blog says investors shouldn’t worry about the stock market’s big decline on the day after Election Day. “The day-to-day action is noise,” Ritholtz tells Bloomberg, adding that he thinks the tumble was a Wall Street “hissy-fit” about President Obama’s re-election. Ritholtz also says he’s more concerned with […]