Value Stock Picks in an Elevated Market

Although today’s market is a bit pricey, it still offers some values if you shop around and properly evaluate a company’s operations and financials. This according to Validea CEO in a recent article for TheStreet. The article underscores the investment mantra of Warren Buffett–“It is far better to buy a wonderful business at a fair […]

Tepper Likes the Market’s Economic Backdrop

In a recent CNBC interview, Appaloosa’s David Tepper said that while stocks are not “really cheap,’” current economic conditions provide a solid backbone for the market. “Listen,” Tepper argued, “it’s hard to go short when you still have the drugs being given.” The hedge fund manager emphasized the importance of reduced regulation, a “cornerstone of […]

Bill Gross Warns Investors to Preserve Capital

Under current conditions, warns bond guru Bill Gross, investors would be well served to focus more on preserving capital than earning high returns, according to a recent CNBC article. Given the huge amount of debt on our country’s books (upwards of $65 trillion), Gross says, “Our highly levered financial system is like a truckload of […]

Cautious Dividend Investing a Must

Given the historically low interest rate and return environment, investors hungry for yield have been gravitating toward dividend stocks, but the valuation advantage of this asset class has diminished. This according to an article in this week’s Forbes by Validea CEO John Reese. “Since yield no longer provides a reliable valuation tool” writes Reese, “investors […]

Time to Separate the Market from Politics

The widespread assumption that the strength in both equities and bond yields is a result of Trump’s election may be misleading, writes Zach Karabell in last week’s Barron’s. Envestnet’s head of Global Strategies argues that equity strength could have come from strong fundamentals “that are now more in focus” with the election behind us, and […]

New Manager at Pimco is Paying Off

The Pimco Income Fund, managed by Dan Ivascyn, has returned 10.6% over the past 12 months alone and, according to last week’s Bloomberg, investor money is “pouring in at pace unseen by any other actively-managed stock or bond  fund” (according to data compiled by Bloomberg and Morningstar). The fund overtook Pimco Total Return Fund (once […]

Active Management is Alive and Well

An article in last month’s Enterprising Investor outlines some interesting insights into how active management is “alive, thriving and adding value across trillions of dollars of assets worldwide.” The author cites research showing that “focused” active managers—those specializing in certain asset classes, sectors, etc.—can outperform index funds. One example cited is that of smaller, earlier-stage […]

WSJ’s Jason Zweig on American Capitalism

The notion of capitalism as a mechanism in which “fat and happy” companies become acquisition targets is changing, writes Jason Zweig in last week’s Wall Street Journal. Zweig cites new research that shows “U.S. companies are moving toward a winner-take-all system in which giants get stronger, not weaker, as they grow.” A few “superstar firms,” […]

Veteran Economist Suggests Trump Rally Caution

Contrarian economist David Rosenberg, chief economist and strategist at Toronto-based Gluskin Sheff & Associates, offers market insights in a recent interview with Barron’s. Here are some highlights: View on U.S. economy: “We’re going to average close to 2% real GDP growth this year, well below consensus.” Rosenberg doesn’t think the economy will “break out to […]

Warren Buffett’s Turnaround on Tech

Warren Buffett bent his “no tech” rule with major investments in both IBM and Apple, and made recent headlines by significantly increasing his stake in the latter to the tune of 57.36 million shares, nearly quadrupling the amount held on September 30th of last year. This according to Validea CEO John Reese in last month’s […]

Robert Shiller Shares Insights on the Trump-Bump

In a February interview with Bloomberg, Yale University professor Robert Shiller says, “I think the Trump effect is really important.” While Shiller, winner of the Nobel Prize in Economics, says he can’t speak authoritatively on what’s ahead because that would be “guessing human psychology,” he says that the current Shiller P/E ratio (also referred to […]