Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Kenneth Fisher-inspired strategy, which has averaged 12.1% annualized returns since its inception seven years ago, over a period in which the S&P 500 has returned just 1.3% per year. Below [...]
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Archive | July, 2010
Tilson & Heins on Shorting Opportunities
July 23, 2010
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In their latest Discovering Value column for Kiplinger’s, Whitney Tilson and John Heins discuss the ins and outs of short-selling, and offer some insight into where they are currently focusing their short-selling efforts. Tilson and Heins say they are value investors, and in choosing their long positions they take a classic value approach. But while [...]
Read moreYacktman Still High on High-Quality, and Thinking Globally
July 23, 2010
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Top fund manager Donald Yacktman is continuing to find the best values in high-quality companies, and has his long-term focus on companies with international exposure. “Last quarter we wrote that many holdings had gone from ‘the exceptional to the more than acceptable,’” Yacktman’s firm states in its second-quarter letter. (Click here for a PDF copy [...]
Read moreConsumers As Contrarians Indicators
July 21, 2010
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One of the reasons for the market’s tumble late last week was a much worse-than-expected consumer confidence reading. But according to Mark Hulbert and the research of Kenneth Fisher, the decline may actually be a bullish sign. In his latest MarketWatch column, Hulbert says he recently examined how stocks fared in the month, year, and [...]
Read moreSiegel: Valuations Among Most “Persuasive” in Decades
July 21, 2010
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Wharton professor and author Jeremy Siegel tells Bloomberg that he expects a “soft” second-quarter GDP reading, but he continues to believe we will not see a double-dip recession. Siegel also says valuations are extremely attractive. “From a valuation standpoint, I find this one of the most persuasive markets in many decades actually,” he says.
Read moreGuru Strategy Rating Changes: AT&T Rising, Pepsi Falling
July 21, 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 moreGrantham on Deflation, and the Remarkable Cheapness of High-Quality Stocks
July 21, 2010
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While many remain concerned that major inflation is lurking around the corner, GMO’s Jeremy Grantham says deflation, not inflation, is the greater concern. “Even if we get intermittently rising commodity prices, which seems quite likely, the downward pressure on prices from weak wages and weak demand seems to me now to be much the larger [...]
Read moreKeys to Buffett’s Success
July 20, 2010
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In an interview with The Motley Fool web site, author Roger Lowenstein, who has written extensively about Warren Buffett, offers some interesting insights into why the “Oracle of Omaha” has been such a successful investor. “The most underrated part of his success would be his independence of character, his ability to just not do what [...]
Read moreEl-Erian: Market Looking for Top-Line Growth — and Not Getting It
July 20, 2010
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PIMCO’s Mohamed El-Erian says that the “new normal” is starting to play out, with a lack of top-line growth causing the market to adjust and reprice. “For a while, revenue growth is going to be muted until we finish the deleveraging process,” he says. El-Erian says he thinks that process will take “a couple of [...]
Read moreBolton on China: Small Firms, Big Opportunities
July 19, 2010
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Anthony Bolton, the highly successful U.K. fund manager who came out of retirement this year to take over a new China-focused fund for Fidelity, is particularly keen on smaller Chinese firms. Bolton recently told Dow Jones Newswires that small- and medium-sized businesses (those with market caps under $5 billion) tend to be under-researched in China. [...]
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