Jim O’Shaughnessy, Chairman and CEO of O’Shaughnessy Asset Management, believes that equity valuations “present buying opportunities akin to 1974 and 1982.” He writes that investors need to ignore short-term volatility and market-bottom calling, and instead focus on where stocks will be three to five years from now. O’Shaughnessy offers a number of historical stats that […]
Read more
Archive | December, 2008
Hulbert: Current Crisis is “Textbook Illustration” of Liquidity Shock
December 30, 2008 
0 Comments
In his regular New York Times column, Mark Hulbert looks at the stock market’s behavior since the credit crisis began and references a 2001 academic study to glean some insight as to what we can learn from these types of periods. He writes, “you can view the markets’ behavior since mid-2007 as a textbook illustration […]
Read moreCash-to-Stock Market Ratio has Leuthold Group Bullish on Stocks
December 30, 2008 0 Comments
The amount of cash, bank deposits, and money-market funds ($8.85 trillion) is equal to 74 percent of the market value of U.S. companies, according to this Bloomberg article. The cash-to-stock market value ratio is the highest it’s been since 1990, according to Federal Reserve data compiled by Leuthold Group and Bloomberg. This huge cash hoard […]
Read moreGross: More Gloom — and “Enormous” Opportunities
December 29, 2008 0 Comments
Pimco founder Bill Gross lays out some ugly economic predictions in the latest issue of Forbes, but also offers a tip for how investors can profit from the U.S. financial woes: by buying preferred shares and senior debt of financial companies benefiting from the government’s bailout spending spree. In the past year, writes Forbes’ Bernard […]
Read moreValues Abound in Small-Caps
December 26, 2008 0 Comments
In this week’s Validea Hot List newsletter, John Reese says that his Guru Strategy computer models are finding an array of values among small-cap stocks, particularly among those that would be considered small-cap growth firms. Reese’s Hot List portfolio added eight new stocks on his regularly scheduled rebalancing, all but one of which are in […]
Read moreThey Saw The Trouble Coming — And Some See More Ahead
December 23, 2008 0 Comments
Kiplinger’s takes a look this week at nine people who “called it right” in predicting the credit crisis and market collapse, and asks what they see coming for the year ahead. Some — like Jeremy Grantham, Robert Rodriguez, and Nouriel Roubini — are people whose opinions we’ve detailed in past posts, but here’s a look […]
Read moreArnott Sees Huge Opportunities in Bonds
December 23, 2008 0 Comments
Add Robert Arnott to the list of well-known previously bearish investment managers who are seeing value in the market. “I like investments, if I’m getting paid to bear risk,” Arnott tells Brian Milner of Canada’s Globe and Mail. “And right now, this is one permabear who is strongly bullish on a wide array of markets.” […]
Read moreBarron’s: Wall Street Strategists See Market Gains in 2009
December 23, 2008 0 Comments
The 2009 stock market and earnings estimates are starting to roll in, and this week’s Barron’s kicks off the race as it discusses where top Wall Street strategists think we’ll end the year – both in terms of earnings and the market level on the S&P 500. Twelve market experts, including Bob Doll of BlackRock […]
Read moreRoyce on Long-Term Possibilities, More Bank Closures, and Margin of Safety
December 22, 2008 0 Comments
Chuck Royce, chief investment officer of The Royce Funds, tells Forbes.com that he sees “tremendous” possibilities in the stock market over the next three to five years, and says that America will make it through the current financial crisis and have a “wonderful” future. “I think that we are a major — we can’t forget […]
Read morePimco’s El-Erian: Beware of Value Traps, Seek Catalysts
December 22, 2008 0 Comments
Pimco Co-CEO Mohamed El-Erian tells CNBC that “every investor should go back to the basics” in 2009. According to El-Erian, investors need to focus on “diversified asset allocation, good implementation vehicles, and solid risk management”. El-Erian believes equities could lag until investor confidence improves and warns that some investments could be value traps — meaning […]
Read more
