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 Joel Greenblatt-inspired strategy and portfolio, which has averaged returns of about 8% per year since its inception while the broader market has been in the red. Below is an excerpt [...]
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Archive | October, 2010
Ritholtz: Don’t Fight The Fed
October 15, 2010
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Barry Ritholtz says that the market has shown resilience in recent months, and says Federal Reserve’s stimulative policies make it hard to bet against the market. “You can’t really be short a market where the Fed is saying we’re going to do whatever it takes to hold up every asset class,” Ritholtz tells Yahoo! TechTicker. [...]
Read moreNygren: Equity Returns Likely to “Dominate” Fixed Income Returns
October 13, 2010
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In his third-quarter commentary, top value fund manager Bill Nygren says equities are “highly likely to dominate returns” from fixed income investments. “We continue to believe that equities are attractively priced and are highly likely to dominate returns from more popular assets such as fixed income,” Nygren writes in his commentary, which is posted on [...]
Read moreSentiment Levels Bode Well for Stocks, Hulbert Says
October 13, 2010
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Mark Hulbert says the market could be in for an “explosive” jump higher, if and when it passes its April highs. In his latest MarketWatch column, Hulbert says that while the market is trading at almost the same level it was back in late April, “there are a lot of things different about today’s market” [...]
Read moreHerro Focused on Fundamentals, Not Macro
October 13, 2010
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While many investors are keying on macroeconomic factors these days, top fund manager David Herro says he’s sticking to fundamentals. “People are afraid to stay focused on the fundamentals, so they are going to the macro,” Herro, whose Oakmark International fund is in the top 2% of its peers over the past ten years, the [...]
Read moreFaber: Dump Bonds, Buy Stocks
October 12, 2010
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While saying he’s “ultra-bearish on everything”, Marc Faber — who predicted the 1987 market crash and turned bearish shortly before the 2007-09 bear market began — says investors should sell cash and bonds and buy stocks. “Instead of interest rates going down, they could start to go up, instead of the dollar being weak, it [...]
Read moreGuru Strategy Rating Changes: Fast Food, Telecom Stocks on The Move
October 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. Among the bigger-name movers: Vodafone Group and Wendy’s Arby’s Group.
Read moreSonders: Yield Curve Flattening Not Cause for Worry
October 11, 2010
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While some investors have been concerned about the rapidly flattening yield curve, Charles Schwab Chief Investment Strategist Liz Ann Sonders says history shows such a trend isn’t cause for alarm. A flattening yield curve means lower profits for banks, which can borrow at lower short-term interest rates and invest at the higher long-term rates. “That [...]
Read moreReese on How to Dig Up Hidden Gems Like Lynch
October 11, 2010
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Many investors are drawn to stocks of companies that come from exciting, booming industries or that have catchy names and flashy new products. But mutual fund legend Peter Lynch prized a much different set of qualities in his investments, and in his latest article for NASDAQ.com, Validea CEO John Reese takes a look at some [...]
Read moreWhy The “Dissonant” Market Is Great News
October 11, 2010
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In their latest column for Kiplinger’s, Whitney Tilson and John Heins say the current investment climate is among the most dissonant as they’ve ever seen — and that the contradictory stances investors have toward stocks are making for a myriad of opportunities. Tilson and Heins say investors are “torn between wanting safety and craving yield”, [...]
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