Nobel Prize-winning economist Robert Shiller says US stocks are among the most overpriced in the world. But he’s not ditching American equities altogether.
For years, the US economy pushed ahead at a tepid pace, quantitative easing reigned, and US stocks lacked competition from other assets. But now that story is changing, says Charles Schwab’s Liz Ann Sonders.
Few market commentators can make forecasts that stretch five or six years out that are worth listening to. But bond guru Jeffrey Gundlach has the track record that makes his opinion notable — and he says that 2020 will be a time of turmoil.
Bill Miller, who beat the S&P 500 for a record 15 straight years before his portfolio was decimated in the financial crisis, has returned with a vengeance, with his fund in the top 1% of those in its class over the past three years and the top 7% over the past five years. And now Miller is loading up on stocks from two sectors that pounded him in the crisis.
Bond guru Jeffrey Gundlach is expecting though times for the housing market — so tough that he’s shorting homebuilders.
Nobel Prize-winning Yale Economist Robert Shiller recently appeared on WealthTrack and offered some of his thoughts on where he’s been finding value in the stock market.
Fund manager Tom Forester, who was the only equity fund manager to make money in 2008 when the housing and financial crises rocked markets, says issues still lurk beneath the surface of the rebounding housing market. While foreclosures and delinquencies have declined quite a bit, Forester tells Investor’s Business Daily that many foreclosed homes have been bought in recent years by hedge funds or wealthy investors, who wanted to rent out the properties to make money. But an oversupply of rental properties is curtailing their efforts. “Many hedge funds paid full price and more, leading to a price spurt,” Forester […]
Yale Economist and housing guru Robert Shiller says that he doesn’t think the U.S. housing market is in “boom territory”, but he does compare the current environment to the start of the late 1990s/early 2000s housing boom . Shiller tells FOX Business Network that he thinks home prices will probably keep going up for another six to 12 months. But after that, he says he’s not sure, as he’s worried that an environment of housing shortages and record-low rates, which were driving prices higher, is ending.
The U.S. housing recovery has encouraged many investors in recent months, but Gluskin Sheff & Associates Chief Economist David Rosenberg isn’t sure the rebound has legs. Rosenberg tells CNBC that, while “we’ve certainly had a housing recovery,” the recovery has been in large part a result of housing starts — which plummeted during the Great Recession — catching up to underlying demographic demand. To keep improving, Rosenberg says more first-time buyers need to be involved. Right now, they make up only about 30% of buyers; if that number crosses 40%, Rosenberg says he’d be a believer in the recovery continuing. […]
While many believe the housing market has turned a corner, Yale housing guru Robert Shiller isn’t so sure. Shiller tells Bloomberg that while short-term indicators are up, that also happened in 2009, but the trend didn’t turn into a long-term one. Shiller also talks about the broader financial system, which he says has gotten “a little better”. And he says that we’re a long, long ways away from the climate of “irrational exuberance” that can lead to major market crashes.
Charles Schwab Chief Investment Strategist Liz Ann Sonders — whose calls on both housing and the economy have been quite accurate over the long term — says housing should continue to give the economy a boost in 2013. “In an economy that continues to grow at a pace below trend, the lift from housing will become very important,” Sonders — who warned of a housing downturn in 2006 when few were thinking of it, and then said housing had bottomed a year ago when few believed it — says in commentary on Schwab’s site. She points to an array of […]
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 around, that means more of the same, meaning another big boom,” Shiller tells CNBC. “I don’t think that’s in the cards. We might see home prices go up a little bit, you know, a little bit above inflation, maybe. Not likely that we’ll see a […]
Yale housing guru Robert Shiller says he’s still not convinced the housing recovery is real. Shiller tells CNBC that some 10 million homeowners are still underwater on their mortgages, and many will end up in foreclosure. Those foreclosures will add inventory to the housing market, he says, and economic risks at home and abroad are also a concern. “I still think it’s a risky market,” he says. Shiller also says that the potential elimination or reduction of the mortgage deduction as part of fiscal cliff negotiations could lead to a big shift from buying homes to renting homes.
Charles Schwab’s Liz Ann Sonders says that a rebounding housing market will have more of an impact than many believe it will have on the economy. “People are still underestimating the impact that this is going to have,” Sonders said at the Schwab Impact 2012 conference, CNBC reports. “What people are underestimating is the ripple effect of confidence.” Sonders says that “just about every metric in housing is starting to turn here,” pointing to builder confidence, home prices, and household formation, among others. “We’re finally having a surge in household formation. We have the right kind of supply and demand […]
Warren Buffett’s firm is continuing to bet on a recovery in the U.S. housing market, with one of its subsidiaries taking the lead in managing a new residential real estate affiliate network. HomeServices of America Inc., a subsidiary of Berkshire’s MidAmerican Energy Holdings Company, will be the majority owner of the affiliate network, teaming with Brookfield Asset Management to offer a new franchise brand, Berkshire Hathaway Home Services, Bloomberg News reports. The move is the latest in a series of housing-related moves Berkshire has made, according to Bloomberg, which notes that Buffett’s firm has bought a brickmaker, won the loan […]