Bruce Berkowitz, whose Fairholme fund has produced exceptional long-term returns, says the reason it has fared so well is a willingness to go against the crowd. Berkowitz also tells Bloomberg that he focuses on the amount of cash companies are producing, an approach that led him to shy away from financial stocks during the sector’s [...]
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Archive | January, 2010
Zandi: More Stimulus Needed
January 13, 2010
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Moody’s Economy.com Chief Economist Mark Zandi says that more stimulus is needed to ensure the U.S. doesn’t slip back into recession. Zandi tells Bloomberg that inflation will be no threat in 2010 or 2011, and that the government needs to do what is necessary to make sure the economic recovery turns into sustained expansion, rather [...]
Read moreGuru Strategy Rating Changes: China Mobile, Infosys on the Move
January 13, 2010
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Each week, we take a look at which stocks John Reese’s 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 John’s strategies have upgraded or downgraded today.
Read moreValidea’s Reese High on High-Quality Stocks
January 12, 2010
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In his latest column for Canada’s Globe & Mail, Validea CEO John Reese says that investors would be wise to focus on “high-quality” stocks, particularly given current market conditions. Reese notes that in financial crises, “junk” stocks tend to get hit particularly hard, because companies with weak balance sheets are least likely to survive a [...]
Read moreFisher on which Sectors to Target
January 12, 2010
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In an interview with Bloomberg, Kenneth Fisher says that he’s high on some chemical stocks right now, for both fundamental and cyclical reasons. Fisher says the stocks that usually lead early in a bull market are those that fared well in the first half of the preceding bear market, but then got hammered in the [...]
Read moreGross: Where to Look when the Easing Ends
January 11, 2010
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For much of the past year, Bill Gross of bond giant PIMCO has advocated “shaking hands with the government” — that is, investing in areas that benefit from the government’s massive bailout and stimulus efforts. Now, Gross says 2010 will be a year in which investors should ask “which government” they should shake hands with [...]
Read moreMiller Optimistic on 2010 — if Policy Makers Don’t Falter
January 11, 2010
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Value manager Bill Miller says that 2010 will be another good year for stocks, but that investors need to be very careful of ways that government actions could impact their portfolios. “The outlook for both the stock market and the economy is considerably better than the consensus forecasts,” Miller, Legg Mason Capital Management’s chairman, tells [...]
Read moreOberweis: “OOB” to Drive Stocks Higher in 2010
January 11, 2010
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Newsletter guru Jim Oberweis says he thinks 2010 will be another strong year for stocks, but for different reasons than in 2009. “In contrast to 2009, when cheap valuations drove our bullish conviction,” Oberweis writes for MoneyShow.com, “our 2010 prediction is based on OOB — ‘Out of Bonds.’” According to Oberweis, “way too much money [...]
Read moreWhat an Inefficient Market Means for Investors
January 11, 2010
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In his latest Wall Street Journal column, Jason Zweig offers an interesting take on the efficient market hypothesis, channeling the late, great Benjamin Graham for guidance. Zweig says that while the stock market may give the most accurate estimate of a stock’s value based on the available information, that doesn’t mean its estimates are right. [...]
Read moreNavellier: Stocks, Earnings to be Strong in Early 2010
January 8, 2010
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Growth stock guru Louis Navellier says he sees a very healthy earnings environment for the first five months of 2010. He also tells Bloomberg that he expects stocks will do well in that period, after which the market will become much more selective.
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