Top Dividend Manager Talks Strategy

T. Rowe Price’s Tom Huber, whose Dividend Growth fund is in the top 13% of funds in its category over the past five years, according to Morningstar, says that tax increases associated with the fiscal cliff aren’t reason to avoid dividend-paying stocks. “There is a lot of discussion and worry [about the tax hikes] more […]

Contrarian Indicators Flashing Buy Signals

John Buckingham of Al Frank Asset Management and The Prudent Speculator newsletter says that, as a contrarian, he’s been seeing a number of encouraging signs recently. “Our market outlook as we head into 2013 remains one of cautious optimism for the prospects of our broadly diversified portfolios of undervalued stocks,” Buckingham writes in his latest […]

How Ben Graham Is Still Beating the Market Today

While Benjamin Graham’s classic The Intelligent Investor was written over six decades ago, the Defensive Investor strategy he laid out in it remains a winner, Validea CEO John Reese writes in his latest column. “The investment world is no stranger to apparent greatness that doesn’t last,” Reese writes. “Every year, a number of fund […]

Small, Illiquid, and Cheap: A Winning Combo

In a column for Canada’s Globe and Mail, Norman Rothery says that, while many investors focus on popular, frequently traded stocks, the real profits lie in smaller, illiquid shares.  “While the return potential of small value stocks is well known, the benefits of low liquidity may be less obvious,” Rothery writes. He examines a study […]

Five Reasons for Optimism

In his bi-weekly Hot List newsletter, Validea CEO John Reese offers his take on the markets and investment strategy. In the latest issue, John looks at five reasons he’s optimistic about stocks as 2013 approaches, even though many investors remain fearful of equities.    Excerpted from the Dec. 21, 2012 issue of the Validea Hot List […]

Shilling: Bond Prices to Rise in 2013

Economist Gary Shilling is betting on bonds over stocks in 2013. “I think you play it with a ‘risk-off’ kind of approach,” he tells Yahoo! Finance’s The Daily Ticker. “And that means you probably look for more appreciation in long-term Treasury bonds, which have been a favorite of mine since 1981.” Shilling says he doesn’t […]

Favorite Charts from Bogle, Wien, and Others

Business Insider recently asked a number of strategists to discuss their “favorite charts of 2012,” and some of the gurus participating offered some very interesting data.  Byron Wien of Blackstone Partners, for example, provided a chart that showed the pace at which the money supply has expanded vs. the rate at which gross domestic product […]

Sonders: Correlations to Fall in 2013

Charles Schwab Chief Investment Strategist Liz Ann Sonders says a key theme of 2013 will be the continuing decline of correlations. Sonders tells USA Today that she thinks correlations will fall among equity sectors and asset classes, something that has already started to happen. She says that should be a good thing for investors, who […]

Could Wage Inflation Rebound Soon?

Wells Capital Management’s Jim Paulsen says that declining wage inflation — which has allowed the Federal Reserve to continue its “crisis-like” loose monetary policy — may be coming to an end sooner than many think.  Paulsen says that for the past 30 years or so, wage inflation has continued to decline for two-and-a-half to four […]

Shiller Still Not Sure Housing Has Bottomed

Yale Economist and housing guru Robert Shiller says he thinks housing prices will continue to rise for a few months, but he’s not sure the upswing will continue after that — and he doesn’t think another housing boom is coming any time soon. “A lot of people seem to think that if the market turns […]

Three Lessons From 2012

Michael Cintolo of the top performing Cabot Market Letter recently reviewed three key lessons he’s learned or relearned in 2012. Cintolo says that one of those key lessons involves relying on your investment system when times get stressful. While it is good to have a plan for different scenarios, he says, “obsessing over every scenario […]

Rosenberg: Put Cash to Work in 2013

The often gloomy David Rosenberg of Gluskin Sheff + Associates says 2013 is a year for investors to put their cash to work. Rosenberg still sees anemic growth for the United States and isn’t too optimistic on corporate profits, but he also thinks the Federal Reserve’s policies are making cash a bad place to be, […]

Fisher: Don’t Fear The “Fiscal Rolling Plain”

Top strategist Kenneth Fisher says the “fiscal cliff” drama is far overblown, and that the overwrought fears about budget cuts and tax hikes are actually a bullish sign. “If there’s no deal, it’s not a crisis. The fiscal cliff is fake,” Fisher says in an interview with Forbes. “A political invention, arbitrarily put at January […]

Behind Buffett’s Approach

In a recent interview with Canada’s Globe and Mail, Validea CEO John Reese discussed some of the key points of Warren Buffett’s investing approach. Reese talks about Buffett’s desire to invest in comapnies with very lengthy histories of increasing annual earnings per share, as well as his long-term mindset. “He has a very long-term approach […]

El-Erian on Recession Odds

PIMCO’s Mohamed El-Erian says that if the U.S. avoids the “fiscal cliff”, he and PIMCO don’t think the U.S. will enter recession in 2013. El-Erian tells Bloomberg that he thinks we’ll continue to see sluggish growth in the 1.5% to 2% range as the economy continues to heal. “The big question for us is how […]

Bolton Sees China Turnaround

Top U.K. fund manager Anthony Bolton says he’s expecting a rebound in Chinese growth next year. Bolton tells Investment Week that he thinks China’s growth has actually been slower than the official 7.5% figure being cited this year. “The headline figure is not reliable and I think growth has come down below that this year,” […]

Siegel: Stocks Are Cheap

Several top strategists recently spoke at the CFA Institute Equity Research and Valuation Conference, and The Motley Fool’s Bryan Hinmon and Michael Olsen highlighted a few pieces of advice from these gurus. One was author and Wharton Profesor Jeremy Siegel, who advised that “stocks are cheap”. Siegel said stocks are trading below average historical valuations, […]

Fisher Thinks Fed Has Gone Too Far

The Federal Reserve’s decision to continue $85 billion per month of Treasury bond and mortgage-backed security purchases amounts to “un-stimulus”, according to Kenneth Fisher. In a piece on Fisher Investments’ MarketMinder, the firm’s Editorial Staff says that, while Fisher and his firm believe that the Fed’s easing policies during and immediately after the 2008 financial […]

Beat The Market Like Buffett

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 Warren Buffett-inspired strategy, which has averaged annual returns of 5.8% since its December 2003 inception vs. 3.3% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring […]

Mauldin: Decreasing Deficit Means U.S. Must Run Trade Surplus

Economist John Mauldin says history shows that if the U.S. wants to reduce private and public sector leverage, it will have to figure out how to run a trade surplus. Mauldin says that a country cannot reduce total leverage while running a trade deficit — the amount of leverage used and the trade balance must […]

Sonders: Valuations Could Cushion Market If Cliff Strikes

In her latest Market Snapshot, Charles Schwab Chief Investment Strategist Liz Ann Sonders says that even if the U.S. goes off the “fiscal cliff” — triggering a variety of tax hikes and budget cuts — other factors will likely help keep a potential recession “fairly mild”. Among those factors are the rebound in the housing […]