CFA Panelists: Economic Bears, Stock Market Bulls

The CFA Institute held its Global Financial Crisis Roundtable Thursday, with institutional expert Theodore Aronson, Goldman Sachs’ Abby Joseph Cohen, bond expert Martin Fridson, and economist Jason Trennert speaking in a panel discussion moderated by The Wall Street Journal’s Jason Zweig. U.S. News & World Report’s Kirk Shinkle offers the following observations from the hour-plus discussion: “Cohen made it clear she thinks that many (though not all) markets have fallen enough to make new opportunities attractive. ‘There is value being re-established,’ she said. All the analysts said the macro factors, including the incoming administration, will matter for markets. There, Cohen […]

Reese: Five Hot Stocks With Staying Power

In his latest column for Forbes.com, Validea CEO John Reese takes a look at what stocks have actually been among the biggest gainers while the market has plunged in the past couple months. These stocks can be awfully tempting for investors, who are trying to latch on to any sort of positive market vibes amid this difficult climate. But, Reese cautions, buyers should beware: “Blindly following hot stocks can get you in trouble,” he says, “and in this environment, it can spell disaster for your portfolio. Simply going with stocks that have been hot during an incredibly anomalous climate is […]

“Dr. Doom”: Things Will Get Worse — But No “Armageddon”

New York University Professor Nouriel Roubini — who has been dubbed “Dr. Doom because of the predictions of financial woes he’s (often correctly) made in recent years — tells Yahoo’s Tech Ticker that he sees another 20 to 30 percent of downside risk for stocks, but adds that he’s not in the “financial Armageddon camp”. Roubini, who is also the chairman of the RGE Monitor research group, sees a severe recession through 2009, but doesn’t think we’ll see another Great Depression, or a repeat of the decade-plus deflationary recession that has plagued Japan. Want proof that he sees a good […]

PIMCO Co-CEO Calls for “New Thinking”

PIMCO’s Mohamed El-Erian says that “Only New Thinking Will Save the Global Economy”. El-Erian believes that the situation will get worse before it gets better, saying that we are moving toward a “different destination” and one that results in “more market accidents, disorderly sectoral realignments and additional shifts in policy.” He goes on to say that “we are also in the midst of a prolonged increase in precautionary behavior among entities that have suffered massive wealth destruction and face a multi-year clean-up of assets and businesses. Without further adjustments, there will be an aggravation of the negative feedback loops that […]

Legg Mason Managers: Depression Unlikely, But Concerns Remain

Top managers from Legg Mason, including Chuck Royce, Hersh Cohen and Isaac Souede, think that stocks are priced for a depression but that a depression is unlikely (Souede thinks there is a 20% chance of a global depression). At Legg Mason’s year-end investment briefing, the managers said “the stock markets won’t rebound until the global credit crisis is fixed.” Royce, Legg’s ace small cap manager, “hopes to start seeing ‘signs of spring’ in the next six to nine months.” Cohen went on to say that he worries that many investors who have lost money in this market may not come […]