John Bogle, founder of The Vanguard Group, tells PBS’ Darren Gersh that he expects corporate earnings will come back stronger than the 5 percent average growth they’ve exhibited over the past century as they revert toward their mean. Bogle didn’t say exactly when he expects the earnings rebound to begin. But he does say he [...]
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Archive | December, 2008
Shilling: Watch Out For S&P 600
December 19, 2008
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Gary Shilling, president of A. Gary Shilling & Co. and Forbes magazine columnist, speaks to Yahoo! Tech Ticker about his outlook for stocks. He says that investors need to approach things “very cautiously” and that earnings on the S&P could come in at $40 per share next year. Assuming you have a multiple of 15 [...]
Read moreWSJ, Grantham on The Trouble with Earnings
December 19, 2008
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Is the market cheap, as investors like Bruce Berkowitz and David Dreman have said recently? Or is it still overpriced, as others, like Jim Rogers and Bill Gross, have maintained? The answer may depend on which set of corporate earnings you look at. That’s the issue The Wall Street Journal’s Mark Gongloff examines today. Gongloff [...]
Read moreThe Stars — and Fallen Stars — of 2008
December 18, 2008
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Kiplinger’s Fred Frailey looks this week at how some of the world’s top money managers got hammered by the recent market crash, as well as at how other noted managers lived up to their reputations and avoided the plunge. According to Frailey, some of 2008′s big-name losers have been Legg Mason’s Bill Miller (down 59% [...]
Read moreSchwab’s Sonders Sees Positives in Market, but Slow Recession Recovery
December 18, 2008
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Charles Schwab Chief Investment Strategist Liz Ann Sonders, who has been pretty cautious in recent months, offered a positive perspective on the market this morning. Sonders told Yahoo! TechTicker’s Aaron Task that — while neither she nor anyone else knows if stocks have bottomed — we are at least seeing several signs typical of the [...]
Read moreTilson on “Points of Maximum Pessimism”, and Buffett Bashers
December 17, 2008
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In a column for The Financial Times, fund manager Whitney Tilson says that, while he’s no optimist about the U.S. economy’s short-term prospects, he does “believe the level of panic that has overtaken the market has created buying opportunities for investors who can see light at the end of the very dark tunnel.” Tilson indicates [...]
Read moreConsumer Stocks Still Kickin’
December 17, 2008
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Continuing its look at what has and hasn’t been working in the market of late, Bespoke Investment Group says today on Seeking Alpha that the consumer staples and healthcare sectors have had the best relative strengths versus the S&P 500 over the past 12 months. That’s not surprising, Bespoke says, given those sectors’ reputations as [...]
Read moreAfter Avoiding The Crash, Forester Sees Great Values, Year-End Rally
December 16, 2008
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Tom Forester, one of the few fund managers to make it through the recent market crash almost unscathed, tells CNBC that he expects a year-end rally in the market, and says bargain stock values have him “excited” about the future. Forester, who heads the Forester Value Fund, has locked in a loss of only about [...]
Read moreMorningstar: Dow Selling at 30% Discount
December 16, 2008
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Morningstar analyst Ann Gilpin says the investment research group believes the Dow Jones Industrial Average is now selling at a 30 percent discount. The Dow’s fair value is about 12,500, Gilpin says, noting that “our coverage universe [is] trading at the steepest discounts we’ve seen since we started valuing equities”. While acknowledging the weakness of [...]
Read moreHarvard’s Porter: Stimulus Should Be More than Short-Term Boost
December 16, 2008
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Famed strategy expert Michael Porter of Harvard Business School shares his view on America’s overall economic strategy on CNBC. Since the election, he says, we are off to a good start and President-elect Obama and America have gained “a lot of goodwill” internationally. However, Porter questions whether the probable stimulus package will go to efforts [...]
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