In the latest issue of Equities and Tobin’s Q, John Mihaljevic (CFA and managing editor of The Manual of Ideas blog) explains that the “Q” ratio made famous by Nobel Laureate James Tobin indicates that stocks are undervalued right now — but says that there could still be further declines before a turnaround. (A special [...]
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Archive | March, 2009
Gross, Lynch, Malkiel: Varied Perspectives on Current Market
March 17, 2009
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In interviews with the Washington Post, three top market minds — former Fidelity star manager Peter Lynch, PIMCO’s bond guru Bill Gross, and Princeton professor and author Burton Malkiel — offer some pretty wide-ranging views on the stock market and where we’re headed. Lynch and Malkiel express a fairly bullish take for long-term investors. Lynch [...]
Read moreGood Quant, Bad Quant
March 16, 2009
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MarketWatch’s Paul Farrell recently offered up a scathing critique of “quants”, complete with this eye-catching subhead: “By Predicting Your Behavior, Quants Control Your Mind, Money, the Markets”. Since I run what could be considered “quantitative strategies” both on my web site, Validea.com, and in my money management business, I was interested to see what Farrell [...]
Read moreBuffett, Berkshire Focusing on U.S.
March 13, 2009
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Warren Buffett tells Bloomberg that the odds are his Berkshire Hathaway — still on a buying binge — is more likely to make its next acquisitions in the U.S. rather than abroad. “The statement is a reversal for Buffett, who spent four days at press conferences and meetings in Switzerland, Germany, Spain and Italy last [...]
Read moreKass: It’s Dinner Time
March 12, 2009
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TheStreet.com’s Doug Kass — a pretty hardened bear whose stance began to soften last month — is now standing firm in his call that we’ve reached a bottom. “We live in a Land of Johnny-Come-Lately Chicken Littles, most of whom failed to identify the credit and economic risks 1½ years ago but who today hold [...]
Read moreHussman: Good Values, but No Bottom
March 12, 2009
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John Hussman, whose Strategic Growth and Strategic Total Return funds were some of 2008′s best, is warning that major volatility may soon return to the stock market. “I suspect that the markets are about to get volatile, possibly to an extent beyond what we observed in October and November,” Hussman wrote in his latest market [...]
Read moreTilson & Heins: How You Can Be a Stock “Lion” Like Templeton
March 11, 2009
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Barry Ritholtz isn’t the only successful manager saying investors should be making “watch lists”. In their latest “Discovering Value” column for Kiplinger’s, Whitney Tilson and John Heins say that maintaining a watch list of stocks you’re interested in is a key to good investing. “The stock market rarely offers truly exceptional buying opportunities, so it [...]
Read moreRitholtz: Time for a Wish List
March 10, 2009
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Barry Ritholtz of The Big Picture blog and FusionIQ is the latest well-known bear to turn bullish, notes Yahoo! TechTicker. In an interview with Aaron Task of TechTicker, Ritholtz says that the market has reached levels at which he’s seeing a lot more upside than downside. “If you’re a long-term investor, at the very least [...]
Read moreLynch: Stocks Still Best Choice for Long Term
March 10, 2009
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In a recent interview with The New York Times, former Fidelity star manager Peter Lynch says that the recent market plunge and financial crisis hasn’t shaken his belief that stocks are the best long-term choice for investors. “I can’t tell you anything about where the market will be in the next six months or 12 [...]
Read moreBuffett Bonanza: Government vs. Fear, Bank Prognosis, and Why You Should Still ‘Buy American’
March 9, 2009
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Warren Buffett spent three hours on CNBC’s Squawk Box this morning discussing the economy and stock market from all angles. Buffett says the economy will turn around, but that it won’t happen quickly — and he says government actions will be crucial in how quickly it gets back on track. “I’ve never seen the consumer, [...]
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