Biggs: “Rally Going to Continue for a While”

Hedge fund guru Barton Biggs, who had been reducing equity exposure late in the summer months, has recently reversed course and has continued to up his exposure since the announcement of the new plan to stem Europe’s debt crisis.  “This morning, all of the wise men of Europe and the economists are very negative about this European deal that was worked out last week,” Biggs tells Bloomberg. “The general feeling is that the right thing to do is to cut back on risk and that it is going to be a flop, and that all they did was kick the […]

Biggs High On Cash Amid Fear of Financial Crisis

Hedge fund guru Barton Biggs says he’s only 20% net long on equities in this market, and says we may be on the eve of another financial crisis. Biggs says policymakers have tools at their disposal to help, but have failed to come together to do so in Europe or the U.S. “In times like this, there’s nothing the matter with cash,” Biggs says. “I don’t think any place is a place to invest right now.” He adds that “When there is clarity, and when the authorities move and do something, emerging markets will be a fabulous place to invest. […]

Biggs Likes “Old” Tech Stocks; Wary of Financials

Hedge fund guru Barton Biggs says he’s continuing to find opportunities in the stock market right now, though he’s not too bullish on financials. Biggs tells Bloomberg that worries about further housing-related writedowns and questions about the legitimacy of their book values make financials a question mark. One area he likes: “older” tech stocks like Intel and Cisco, which he says are now “incredibly cheap”. [youtube=http://www.youtube.com/watch?v=ItdINs92mGA]

Biggs Bullish, Despite Slowing Economy

Hedge fund guru Barton Biggs says the economy has slowed, but he remains bullish on U.S. stocks. “The U.S. and the global economy have clearly slowed pretty significantly,” Biggs tells Bloomberg Surveillance. “That’s arousing the bears, who believe we’re going to slip back into a long soft patch at best or maybe even a double-dip at worst. For a number of reasons I don’t think that’s right.” Biggs says investors are overreacting to news like the European debt crisis and the recent drop in housing starts, which was weather-related. One area he likes is large U.S. industrials. “I don’t see […]

Biggs Likes Manufacturers, Capital Equipment Stocks

Hedge fund guru Barton Biggs says he has more confidence in the U.S. market than other markets around the world. “We’ve been through a period here where the bull case for the global economies has definitely weakened in the last week or so,” Biggs recently told Bloomberg. “[But] I still feel good about the U.S. market.” Biggs says the U.S. market puts investors on a more level playing field than those of other countries. He also says the recent decline in commodity prices should help the U.S. economy. He likes capital equipment stocks and manufacturing stocks, such as Caterpillar and […]