While still somewhat wary of the economy, Jim Oberweis says that you can find plays in the technology and consumer discretionary sectors – “the pillars of a growth portfolio” — if you know where to look. Oberweis writes in his latest Forbes.com column that retailers such as restaurants, auto suppliers, consumer semiconductor makers, and advertising [...]
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Archive | February, 2010
Using Free Cash Flow Yield, Lynch- and Berkowitz-Style
February 25, 2010
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In his latest Forbes.com article, Validea CEO John Reese takes a look at stocks that might interest two of history’s top investors, Peter Lynch and Bruce Berkowitz. Reese notes that Berkowitz — Morningstar’s domestic fund manager of the decade — focuses his analysis on “free cash flow yield”. Free cash flow is essentially the cash [...]
Read moreArnott Sees “Another Tough Slog” in Coming Decade
February 25, 2010
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While many are predicting that the coming decade will feature some strong bounce-back gains for stocks after a poor 2000s, Rob Arnott of Research Affiliates says not to count on it. In a piece written with John West for IndexUniverse.com, Arnott says that the standard market-cap-weighted 60/40 stocks/bonds allocation “is likely to disappoint. Again. Net [...]
Read moreRitholtz: No Signs Rally Is Ending
February 25, 2010
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Barry Ritholtz of Fusion IQ and The Big Picture blog remains bullish on stocks, saying that he sees no indication that the rally is in its final stages. “As long as the fed is going to make money free … it’s hard to find a short, other than some company restating earnings,” Ritholtz tells Yahoo! [...]
Read moreShiller: Confidence Pushing Housing Prices Higher, But Hurdles Remain
February 24, 2010
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Yale Economist Robert Shiller, one of the creators of the S&P/Case-Shiller home-price index (which new data shows rose for the seventh straight month in December), says buyer confidence is behind the recent rebound in home prices across the U.S. Shiller tells Bloomberg that he thinks a lot of new buyers are jumping into the housing [...]
Read moreGuru Strategy Rating Changes: GE, Eli Lilly on the Rise
February 24, 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. Among the bigger names: General Electric and Eli Lilly.
Read moreO’Shaughnessy: Stocks The Place To Be Over Next Several Years
February 23, 2010
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Author and money manager James O’Shaughnessy says that the Federal Reserve’s recent increase of the Discount Rate was “not a big deal”, and that he’s still very bullish on stocks over the longer term. O’Shaughnessy tells CNBC that he thinks factors are in place that will make stocks the “asset class of the choice” over [...]
Read moreA Different Take on Valuations
February 23, 2010
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Liz Ann Sonders, Charles Schwab’s chief investment strategist, says in her latest market commentary that the recent downturn helped temper some of the investor optimism that was becoming “troublesome”, and that — despite the big gains stocks have made in the past year — stock valuations continue to look attractive. Sonders’ favorite valuation gauge is [...]
Read moreBogle: Keep It Simple
February 23, 2010
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In an interview with Texas’ The Statesman, Vanguard’s John Bogle says the key to successful investing is keeping things simple, and not allowing short-term performance to impact your decisions. “[The biggest problem in investing] is that people are focused on short-term performance,” Bogle tells Scott Burns. He says that there will always be some funds [...]
Read moreSiegel Sees More Discount Rate Hikes Before a Fed Funds Rate Increase
February 22, 2010
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Like Bill Gross, Wharton professor and author Jeremy Siegel doesn’t see a hike in the Federal Funds rate as imminent, despite the Federal Reserve’s recent decision to up the Discount Rate. Siegel tells Bloomberg he thinks the Fed will raise the Discount Rate “two more notches up” before it begins to increase the Federal Funds [...]
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