Conventional wisdom is that investors looking for income (as opposed to capital gains) should focus on bonds. But in his latest market commentary on his firm’s web site, James O’Shaughnessy says history shows there is a far better way. O’Shaughnessy’s firm conducted a study that covered the period from Dec. 31, 1962 through the end [...]
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Archive | May, 2010
Siegel on the Euro Debt Crisis’ Bullish Impacts
May 14, 2010
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Author and Wharton Professor Jeremy Siegel says the European debt crisis has had several ramifications that are actually bullish for stocks. Siegel tells Bloomberg that the crisis has caused oil prices to fall, made bond yields drop, and may make the Federal Reserve wait longer than previously planned to raise interest rates.
Read moreZweig: Time to Sit Tight — or Tip-Toe into Euro Stocks
May 14, 2010
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While Europe is getting a lot of attention for its debt problems, Wall Street Journal columnist Jason Zweig says the U.S. may be in worse financial condition than many of the so-called “PIIGS” nations. And, he says, rather than running from European equities, it may be time to start snatching them up. According to the [...]
Read moreGuru Strategy Rating Changes: JNJ Rising — and Falling
May 12, 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. One big-name mover — Johnson & Johnson — is getting upgraded by one model, [...]
Read morePaulsen Sees Declines as a Pause in Upward Trend
May 12, 2010
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Wells Capital Management’s James Paulsen tells Bloomberg that the Greece bailout removes the imminent risk from the European crisis, and lets investors focus on a nice global economic recovery. Following the market’s recent decline, Paulsen says investors now have an opportunity to get back into the market, or to increase their risk exposure. He adds, [...]
Read moreRitholtz Cautious, But Sees No Sign of Market Top
May 12, 2010
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Barry Ritholtz of FusionIQ and The Big Picture blog has had an excellent track record in recent years — bearish before the ’08 plunge, bullish as the market surged in 2009, and, most recently, going 100% to cash two days before the recent May 7 plunge. Ritholtz tells Yahoo! TechTicker that he expected a 10% [...]
Read moreBiggs Sees Tech Sector Leading Next Push Upward
May 11, 2010
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Hedge fund guru Barton Biggs says the global economic recovery is a strong one, and that the next big move in the U.S. market will be a tech-stock-led 15% to 20% upward push. Biggs tells Bloomberg that drug and REIT stocks are also attractive, and says it’s very reassuring that there are so many bears [...]
Read morePaulson Sees Nice Gains Ahead for Housing Prices, Corporate Profits
May 10, 2010
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John Paulson, the hedge fund manager who made billions by calling the U.S. housing market plunge, now sees good times ahead for U.S. home prices and corporate profits. And he says the country is in the midst of a strong V-shaped economic recovery. According to CNBC, Paulson has told investors he expects housing prices to [...]
Read moreSonders Not Panicking
May 10, 2010
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Liz Ann Sonders, chief investment strategist at Charles Schwab, says the Greek debt crisis is much different in nature than the subprime mortgage crisis that pummeled U.S. markets in 2008, and says investors who’ve been sitting on the sidelines should use the recent market dip as a buying opportunity — if they have the stomach [...]
Read moreHerro Sees Dip as European Buying Opportunity
May 10, 2010
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David Herro, whose Oakmark International I fund has beaten 99% of its peers over the past 10 years and 98% of its peers over the past year, says the recent heating up of the Greek debt crisis hasn’t turned him off to European stocks. “They’re going to be impacted in the short term; in many [...]
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