Gary Shilling, the economist, money manager, and Forbes columnist, isn’t changing his bearish view, despite the market’s big recent rally. “I think it is a bear market rally,” Shilling told Yahoo! TechTicker this morning. He says he expects S&P 500 earnings of about $40 for 2009. Put what he calls a “generous” multiple of 15 [...]
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Archive | May, 2009
O’Shaughnessy: Major Opportunities in Dividend Stocks
May 12, 2009
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Even after the market’s recent rally, Jim O’Shaughnessy is continuing to see a myriad of values in the market, he recently told CNBC. “I think it’s very sustainable,” O’Shaughnessy, the fund manager and author whose study of quantitative strategies and historical stock market returns is one of the most extensive in history, said of the [...]
Read moreThe Contrarians’ Revenge?
May 11, 2009
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MarketWatch recently had an interesting piece on contrarian investment strategies, highlighting the fact that many of the contrarian managers who were hit hard last year are now netting some strong bounce-back gains. “As the market has bounced back in recent weeks, [several] contrarian-style funds, with their bargain-minded ways, have been outperforming,” writes MarketWatch’s Sam Mamudi, [...]
Read moreMany Technical Strategies Didn’t Escape Meltdown — And Now Lag S&P
May 8, 2009
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The recent struggles of many top fundamental-focused stock-pickers — Warren Buffett, Bill Miller, David Dreman — have been well-documented. But according to Bloomberg, many technical-based stock-selection strategies have also been hammered during the recent bear — and now are significantly lagging the market in the rebound. “Ever since the Standard & Poor’s 500 Index peaked [...]
Read moreWhat Will the Recovery Look Like?
May 8, 2009
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A “U”, a “V”, an “L” — Time magazine takes a look at what we might expect in the coming economic recovery, with insight from top strategists such as Peter Lynch and Jean-Marie Eveillard. A sampling of the advice: Lynch says that waiting for a major economic recovery to occur before jumping back into the [...]
Read moreSchwab Strategists: Rally Will Hold
May 7, 2009
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Two top Charles Schwab strategists — Chief Investment Officer Jeff Mortimer and Portfolio Manager Paul Alan Davis — said today that the current rally is for real, and that long-term investors should be putting money into equities. Mortimer tells Yahoo! TechTicker that the March 9 low had fundamentals similar to those of the 1974 and [...]
Read moreGrantham: S&P 1000-1100 by Year-End — Then Trouble
May 6, 2009
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GMO Chairman Jeremy Grantham released his first-quarter letter today. While Grantham reiterates some of the points GMO made in its first-quarter update (which we reviewed yesterday), he adds a good deal of new predictions and analysis, and his exceptional track record merits a quick look at some of his key points, beginning with the good [...]
Read moreShiller: Be in Stocks & Real Estate, Despite Risks
May 6, 2009
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Yale economist and housing-bust-predictor Robert Shiller says that, while housing and stock prices could well go lower in the short term, now is a good time for investors to be in both equities and real estate. “I’m less pessimistic than I was a few months ago,” Shiller told Bloomberg when asked about stocks. “The price-earnings [...]
Read moreMatthews: Credit Markets Show Recovery Is for Real
May 5, 2009
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Jeff Matthews, the longtime money manager, told Yahoo! TechTicker today that he thinks the economic recovery and stock market turnaround may well be for real. The key to a recovery, says Matthews — who also maintains the popular “Jeff Matthews Is Not Making This Up” blog — is the credit markets. And, he says, “I [...]
Read moreGMO: International Equities Promising, Govt. Bonds Dangerous
May 5, 2009
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Jeremy Grantham’s GMO has released its first-quarter 2009 update, and the firm says it will continue to put money back into equities, though with a cautious approach. “Having increased our exposure to equities last quarter, we kept to our game plan and gingerly shifted our stance toward favoring riskier asset classes,” GMO states. “Our concern [...]
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