Bond giant PIMCO is making a move into equities, including equities in Europe, according to co-Chief Investment Officer Bill Gross. While some European countries face trouble going forward, Gross tells CNBC that “corporate equities … in terms of valuation, are selling at very low P/E ratios and in some cases might be perceived to be [...]
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Archive | June, 2010
Guru Strategy Rating Changes: GD Rises — and Falls
June 16, 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 big-name movers is General Dynamics, which is being upgraded by one model [...]
Read moreEl-Erian on Getting Beyond the New Normal
June 16, 2010
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PIMCO chief Mohamed El-Erian still sees a slow-growth “New Normal” for economies and investors, but he doesn’t think that New Normal will last forever. El-Erian tells CNBC that he sees the New Normal as a 3 to 5 year phenomenon, and that the U.S. can move past it as balance sheets improve.
Read moreRogers on Where to Find Contrarian Plays
June 15, 2010
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In the latest edition of Forbes.com’s “Intelligent Investing”, Ariel Investments CEO John Rogers Jr. discusses his investment strategy, and explains why he’s high on several media companies and other out-of-favor firms right now. “We love low P/Es,” says Rogers, whose flagship Ariel Fund has returned close to 7% per year over the past decade while [...]
Read moreSoros: Recession “Almost Inevitable” for Europe
June 15, 2010
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Hedge fund guru George Soros says that a recession in Europe is “almost inevitable”, and that the push to curb government spending while major economic problems remain there could lead to a downward spiral. Soros, who last week said that the world had just entered “Act II” of the global financial crisis, told a seminar [...]
Read moreMid-Term Election in Itself Not Cause for Concern, Says Hulbert
June 15, 2010
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While many believe that mid-term elections mean bad news for the stock market, Mark Hulbert says the data indicates otherwise. In his latest MarketWatch column, Hulbert analyzes the performance of stocks in mid-term election years compared to other years. Previously, he writes, he has shown that the market’s performance in mid-term election calendar years “is [...]
Read moreHussman: Four Factors Pushing Us Toward a Double-Dip
June 15, 2010
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In his latest weekly market commentary, top fund manager John Hussman says four factors are indicating that the U.S. is on the verge of a double-dip recession. “In every instance we’ve observed these conditions, the U.S. economy has either already been in a recession, or has been within a few weeks of what turned out [...]
Read moreDreman Finding Value Amid Fear
June 15, 2010
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Contrarian guru David Dreman says that while he expects significant volatility going forward, he’s still finding value in the market. “I think while value is there, we’re all going to have to have much more cast-iron stomachs to be able to go through this,” Dreman tells CNBC. “But at the same time I think stocks [...]
Read moreReese: Growth & Value Not an Either/Or
June 11, 2010
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In the latest edition of his Hot List newsletter, Validea CEO John Reese says that investors too often fall prey to the idea that growth and value are opposing concepts. In reality, he says the best stocks include aspects of both value and growth plays. “In the dozen or so years I’ve spent studying history’s [...]
Read moreGrantham: Stocks Still Above Fair Value
June 9, 2010
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While stocks are down some 14% off their April highs, GMO’s Jeremy Grantham says they are still well shy of fair value territory. In an interview with CBS MoneyWatch, Grantham says he puts fair value for the S&P 500 somewhere between 800 and 875. (The upper bound of that range is almost 20% below where [...]
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