In addition to the question of how many stocks they should own, another similar question many investors ask is how many funds or asset classes they should own. In a recent Financial Times column, David Stevenson offers some interesting data on the topic, as well as some comments from top strategists. The “proper answer” to [...]
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Archive | August, 2009
Paulson on Financial Buying Binge
August 28, 2009
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After profiting hugely from shorting financial stocks last year as the sector tanked, hedge fund guru John Paulson has been buying up beaten-down financials this summer. Paulson has bought a stake of about 2% in Citigroup, the New York Post reports, citing sources. “One source said that Paulson sees Citi’s shares trading closer to its [...]
Read moreBeating the Timing Temptation
August 27, 2009
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As Liz Ann Sonders notes in the posting below, a lot of investors are now wondering whether it’s too late to jump into the market, or, for those who have been in the market during the rally, whether it’s time to cash out. As Sonders says, such all or nothing decisions are very dangerous — [...]
Read moreSonders Says We’re in “Coiled Spring” Recovery, Warns Against All or Nothing Bets
August 27, 2009
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Charles Schwab Chief Investment Strategist Liz Ann Sonders tells Fox Business Network that she thinks we’re in the early stages of a “coiled spring” recovery, and says that too many investors are trying to make all-or-nothing calls as they ponder whether to get back into the market right now. Sonders, who correctly called the start [...]
Read moreGuru Strategy Rating Changes: Dish Network, Under Armour Rising
August 26, 2009
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Each week, I take a look at which stocks my Validea.com Guru Strategy computer models have newfound interest in, and which they have soured on. Here’s a look at some of the stocks that my strategies have upgraded or downgraded today. Among the bigger names on the move: athletic apparel maker Under Armour and gaming [...]
Read moreThey Got It Right in March; What Do They Say Now?
August 25, 2009
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A few weeks ago, we highlighted how Jeremy Grantham — who quite presciently had advised investors to “reinvest when terrified” back in March — is now sounding much more cautious. And, according to The Wall Street Journal, Grantham isn’t the only strategist who correctly called the market’s upturn but is now feeling less optimistic. “In [...]
Read moreBerkowitz: “Great Environment” for Stock-Pickers
August 25, 2009
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Top fund manager Bruce Berkowitz, whose Fairholme Fund has earned about 12% per annum over its 10-year history while the S&P 500 has lost about 3% annualized, says that this is a “great environment for an investor, for a value-based stock picker, security picker”, and that he’s continuing to see a number of bargains in [...]
Read moreM.I.T. Hedge Fund Guru Shares His Secrets
August 24, 2009
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In an interview with WealthTrack’s Consuelo Mack, hedge fund manager, author, and M.I.T. professor Andrew Lo says that the financial crisis has shown that a new type of diversification is needed, that buy-and-hold investing is an incomplete approach, and that using a long-only approach puts individual investors at a significant disadvantage. Lo, who also heads [...]
Read moreStiglitz: Asian Recovery Is “Remarkable”
August 21, 2009
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Two-time Nobel Prize-winning economist Joseph Stiglitz, who recently said he sees a period of “malaise” coming for the U.S. economy, is much more upbeat on Asia’s economies. “Asia’s recovery has been remarkable,” Stiglitz said at a conference in Bangkok, Voice of America reports. “People are talking about a ‘V’ shaped recovery. The big issue that [...]
Read moreRitholtz Cautious, But Says “Traders’ Rally” Still Has Room to Run
August 21, 2009
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Barry Ritholtz — who presciently started turning bullish back in March — says much of the market’s oversold status has been worked off, but thinks the market could continue to head upward into the fall. Ritholtz, of FusionIQ and The Big Picture blog, tells Yahoo! TechTicker that mutual fund managers have gone from a very [...]
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