Charles Schwab’s Liz Ann Sonders remains optimistic on the economy and stock market, though she expects a near-term pull back — and says investors should be cautious about emerging market stocks. “We’ve been optimistic about the prospects for the market for some time and continue to believe the general trend of the equity market will [...]
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Archive | November, 2010
Grantham Says There’s Value in Cash
November 12, 2010
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GMO’s Jeremy Grantham says that both bonds and stocks are overpriced, and that investors should have a substantial portion of their portfolios in cash, allowing them to take advantage when good opportunities do present themselves. “The Fed is driving the S&P [500], which is overpriced … driving it from already substantially overpriced into what I [...]
Read moreRomick Looks to Inflation-Fighters
November 12, 2010
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Top fund manager Steven Romick says that in the current environment, he’s focusing on companies that will be able to handle inflation well. “I’m investing in companies we feel can be protected against inflation, with pricing power that could rise as fast as their costs,” Romick says in an interview with BusinessWeek. He also talks [...]
Read moreThe Zweig Strategy: Growth With a Conservative Streak
November 12, 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 Martin Zweig-inspired strategy and portfolio, which has averaged returns of more than 7% per year since its inception while the broader market has returned less than 3% per year. Below [...]
Read moreRitholtz: Investors Should Welcome Uncertainty
November 10, 2010
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Barry Ritholtz of FusionIQ and The Big Picture blog says that, contrary to popular belief, uncertainty in the market is good for investors. “When the crowd is nervous, it creates opportunities” if you know where to find value, he tells Bloomberg.
Read moreGurus Look North with New “Validea Canada” Site
November 10, 2010
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Warren Buffett may have talked up Chinese companies during his recent visit to the Asian power, but Validea CEO John Reese says you don’t have to go that far to find some nice Buffett-style buys. “China certainly offers many good investment options, but Mr. Buffett shouldn’t overlook opportunities closer to home,” Reese writes in his [...]
Read moreTilson Stresses Stock-Picking in “Muddle-Along” Period
November 10, 2010
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Value investor Whitney Tilson says he’s playing defense on the long side of his portfolio while finding plenty of opportunities on the short side. Tilson tells Forbes.com that he sees neither a V-shaped economic recovery nor a double-dip recession as likely. Instead, like Jeremy Grantham, he sees a period of “seven lean years” in which [...]
Read moreTop Small-Cap Manager Talks Strategy
November 10, 2010
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Jeff Cardon, whose Wasatch Small-Cap Growth fund has beaten almost 90% of its peers over the past decade, recently discussed his strategy and market outlook with Morningstar. Cardon says he’s keying on high-quality small-caps, which he thinks will fare better in a lower-growth environment than lower-quality peers. “Many companies that recently found success when capital [...]
Read moreGuru Strategy Rating Changes: ADM, Healthcare Stocks on Move
November 10, 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: food giant Archer Daniels Midland.
Read moreKass Sees Market Topping
November 9, 2010
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Columnist and money manager Doug Kass has made some solid calls on the market’s movements in recent years, and now he thinks the market is topping out. Kass tells CNBC that he’s skeptical that the Federal Reserve’s latest round of quantitative easing will have the impact many are hoping for. He adds, however, that he [...]
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