Unemployment remains high, economic growth is slowing, taxes may soon rise, and consumer confidence is near historic lows. But while investors are fleeing stocks in favor of bonds amid the tough economic times, history shows they shouldn’t, according to research from James O’Shaughnessy’s firm. In its latest market commentary (“The Economy and the Stock Market”), [...]
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Archive | September, 2010
Guru Strategy Rating Changes: AT&T, RIMM on Move
September 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. Among the big-name movers: AT&T and Research in Motion.
Read moreFisher: Focus on Present Opportunities, Not Fears of the Past
September 21, 2010
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Kenneth Fisher says investors continue to be fixated on the problems of the recent past, which is preventing them from seeing opportunities in the present. “Generally, one thing I’ve learned is that when people are adequately fixated on the negative, pessimistic, skeptic and snarky; to be in such a mode as to be chewing the [...]
Read moreTop Manager Looks for Graham-Like Stocks
September 20, 2010
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John D. Spears’ Tweedy Browne Global Value fund is in the top 1% of funds in its class based on 15-year returns, according to Morningstar, and Barron’s recently offered a look into just how Spears manages this top-performing fund. According to Barron’s, Spears and his partners at Tweedy Browne “try to find what [Benjamin] Graham [...]
Read moreIs It Different This Time?
September 20, 2010
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In his latest article for Canada’s Globe and Mail, Validea CEO John Reese says that the current U.S. recovery — while much-maligned in the media – isn’t all that different from some other recoveries in U.S. history. “Recoveries are never smooth and easy,” Reese writes, adding that bull markets aren’t smooth and easy either. After [...]
Read moreArnott Still Focused on Inflation, Not Deflation
September 20, 2010
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While many investors and commentators have raised fears of deflation recently, Rob Arnott of PIMCO and Research Affiliates still has his eye on potential inflation — and the opportunities it could present for investors. Arnott tells the Los Angeles Times that concerns about deflation could actually end up resulting in inflation. He thinks deflation fears [...]
Read moreStudy: Biases — Not Risk — Are Behind Value’s Outperformance
September 20, 2010
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A new study shows that value investors who remain patient and rational tend to make out better in the market than those who buy up flashier stocks. According to Canada’s Financial Post, the study — performed by The Brandes Institute — examined how stocks performed in the year after reporting earnings. The findings: Value stocks [...]
Read moreThe Piotroski Strategy: How an Accountant Beats the Market
September 17, 2010
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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 Joseph Piotroski-inspired strategy, which has beaten the market by more than 5 percentage points per year since its inception more than six-and-a-half years ago. Below is an excerpt from today’s [...]
Read moreAfter 20 Years of Beating Market, Danoff Talks Strategy
September 17, 2010
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The Boston Globe has a feature today about Fidelity Contrafund manager William Danoff, who has compiled one of the best long-term track records in history and today reaches the 20-year mark of heading the fund. Since he took over, Danoff’s fund has generated average annual returns of 12.2% — nearly 4 percentage points better than [...]
Read moreGuru Strategy Rating Changes: Latin American Stocks on the Move
September 15, 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. A number of Latin American stocks are among the movers.
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