Dreman: It's Time To Buy Banks

Contrarian guru David Dreman says that, while he sees a couple of big economic risks for the US right now, he’s still bullish on the stock market. Why? Because there just aren’t other attractive options. In his latest Forbes column, Dreman says that the lack of wage growth for the middle and working classes and […]

Dreman: It’s Time To Buy Banks

Contrarian guru David Dreman says that, while he sees a couple of big economic risks for the US right now, he’s still bullish on the stock market. Why? Because there just aren’t other attractive options. In his latest Forbes column, Dreman says that the lack of wage growth for the middle and working classes and […]

Great Pages: David Dreman On Resiliency

Can a single page of a book change your investment life? We believe it can. Periodically, we highlight some of the Great Pages that have had a great impact on our investment philosophy. Today, we look at a page in David Dreman’s classic “Contrarian Investment Strategies”, in which Dreman shows that the stock market is far more […]

Think Like a Contrarian with the Dreman 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 David Dreman-inspired strategy, which has averaged 6.5% annualized returns  since its inception more than 10 years ago, beating the S&P 500. Below is an excerpt from today’s newsletter, along with several top-scoring […]

Dreman: Stocks And Housing Are Places To Be

Contrarian guru David Dreman remains concerned about major inflation, and says investors should thus focus on stocks and the housing market. In a column for Forbes, Dreman says that economic improvements and the realization that higher interest rates will come as the economy improves have driven the stock market’s performance recently. “Currently a one-percentage-point rise […]

Contrarian Plays in the Oil Industry

In his RealMoney column, Validea CEO John Reese recently took a contrarian look at oil stocks. “Oil at the moment is on a slippery slope. Prices are at their lowest in months. In fact, they are dropping during the time of year they typically rise due to higher demand in the summer months,” Reese writes, […]

Dreman: Bond Bubble Will Hurt Many

Contrarian strategist David Dreman says a “major bubble that will hurt a lot of people” has formed in the long Treasury bond market. “Ten-year Treasuries are yielding about 2%, while 30-year Treasuries are at 3%,” Dreman tells Morningstar.com. “Adjusting for inflation and taxes, this has almost never happened before. In the rush to Treasuries after […]

Getting Contrarian With A Market Guru

Most of history’s best investors have made their hay by going against the crowd. And in his latest column for Forbes.com, Validea CEO John Reese takes a look at some intriguing new research that contrarian guru David Dreman has published, and a Dreman-inspired strategy that has a strong track record of beating the market. “After […]

Dreman: Best Values in 30 Years

Contrarian guru David Dreman says he’s finding stocks as cheap as they’ve been at any time since 1982. Dreman tells Forbes’Steve Forbes that he’s bullish because valuations are low and companies have good cash flows and financial positions that are as strong as they’ve been in years. (A tip of the cap to Zack Miller of Tradestreaming.com for […]

Dreman Likes U.S. & Canadian Markets

Contrarian guru David Dreman says he’s finding the biggest investing opportunities right now in North American stocks. Dreman tells Canada’s Globe and Mail that over the long term — the past 25 years — the S&P 500 has basically been in a dead heat with more glamorous foreign markets. And, he adds, “There isn’t a […]

Dreman on How To Combat High-Frequency Trading

Contrarian investor David Dreman say high-frequency trading is a “dark vulture” hovering over markets. And in his latest Forbes column, he offers a few tips on how individual investors can elude the beast. “In my forthcoming book, Contrarian Investment Strategies: The Psychological Edge … I detail the dangers of HFT firms that accentuate market movements […]

Getting Contrarian With The Dreman Approach

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 David Dreman-inspired strategy, which has averaged annual returns of 6.3% since its July 2003 inception vs. 2.8% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring […]

Dreman: Look Past the Fear — Now’s the Time to Buy

While many investors have been fleeing stocks this summer, David Dreman says it’s a good time to be buying. “No, the market volatility and the seemingly never-ending Fed follies are certainly not what makes me positive on stocks today, but there are some good reasons to be bullish right now,” Dreman writes in his latest […]

Dreman: Bernanke Stuck in the Past on Jobs

David Dreman says U.S. policymakers are approaching the employment problem with antiquated views, and policies that aren’t addressing the real issues with job creation. In his latest Forbes colunn, Dreman says that Fed Chairman Ben Bernanke “is fighting the monetary woes of the 1930s,” a period in which domestic stimulus led directly to increased domestic […]

Dreman: Prepare Now for Inflation

In his latest Forbes column, David Dreman says investors should be preparing now for major inflation. “Several years back I recommended not to follow the dash out of stocks into Treasurys,” Dreman writes. “The greatest risk to investors today is not stock volatility but rapidly rising inflation. Whether inflation begins to shoot up this year […]

Dreman Positions Portfolio for Inflation

David Dreman says stocks are generally cheap, but he’s still expecting that the U.S. will be jolted by a “really major dose of inflation” at some point down the line. “I’m not talking about at present — this could be two, three years out,” Dreman tells Forbes.com. “But I think we’re going to have a […]

Dreman: Fed Laying Groundwork for “Serious” Inflation

In his latest Forbes column, David Dreman bashes Federal Reserve Chairman Ben Bernanke, and says it’s likely that the Fed’s continued quantitative easing will lead to “serious inflationary repercussions for years to come”. “As an economic elixir, printing money is a sop,” Dreman writes. “With interest rates already extremely low, it is unlikely to sway […]