Top fund manager Philippe Brugere-Trelat says investors are underestimating Europe’s ability to handle the debt problems facing many Eurozone countries. Brugere-Trelat tells WealthTrack’s Consuelo Mack that he likes companies that are based in Europe but which derive a lot of their revenues from other places. Such firms’ shares have been punished because of the Europe-related [...]
Read more
Archive | February, 2011
Why The CAPE Ratio Isn’t A Silver Bullet
February 11, 2011
0 Comments
The “CAPE” Ratio — or Cyclically Adjusted Price/Earnings Ratio — has gained attention in recent years, and many commentators have recently pointed to the ratio as a reason that stocks are overvalued. (The current CAPE of almost 24 is about 50% above the long-term average of about 16.) But is the CAPE level in and [...]
Read moreBirinyi: It’s a Legitimate Bull
February 11, 2011
2 Comments
While many cynics say that the stock market’s bull run will soon end, Laszlo Birinyi sees it as having quite a ways to go. “This bull market has the strongest start of any in history,” Birinyi, the founder and president of Birinyi Associates, says, according to MarketWatch. “When you have a very sharp rise in [...]
Read moreStudy: Lower-Risk Can Mean Higher Reward
February 10, 2011
1 Comment
Higher risk equals higher reward — it’s one of the tenets of modern portfolio theory. But, reports Forbes’ Daniel Fisher, a new study shows that may not, in fact, be true. “A new paper in the Financial Analysts Journal turns that assumption on its head, showing how investors can achieve higher returns by buying stocks [...]
Read morePutting All Your Chips in Hot, High-Growth Areas? Think Again
February 10, 2011
0 Comments
In a two-part series for Canada’s Globe and Mail, Validea CEO John Reese shows how chasing hot sectors or regions can lead to big trouble for stock investors. In Part I of the article, Reese looks at several back-tested portfolios to see how investors who tried to jump on stocks in hot-performing regions would have [...]
Read moreGrantham on Why Bubbles Matter
February 10, 2011
1 Comment
In the second half of his year-end letter, GMO’s Jeremy Grantham takes a look at numerous asset bubbles throughout history, warning investors to ignore bubbles at their own peril. “Responding to the ebbs and flows of major cycles and saving your big bets for the outlying extremes is, in my opinion, easily the best way [...]
Read moreRoyce Sticks with Small Caps
February 9, 2011
0 Comments
While many well-known value investors have been saying that large-cap stocks are due to outperform, top strategist Charles Royce of Royce & Associates says he’s sticking with small-cap plays. Royce talks with WealthTrack’s Consuelo Mack about how he constructs his small-cap-focused portfolios to limit volatility while producing strong performance, and discusses why he thinks the [...]
Read moreGuru Strategy Rating Changes: Smucker Rising, LULU Falling
February 9, 2011
0 Comments
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 moreSonders, Stovall Cautiously Optimistic
February 9, 2011
0 Comments
Charles Schwab Chief Investment Strategist Liz Ann Sonders and Standard & Poor’s Chief Investment Strategist Sam Stovall are sounding cautiously optimistic about the economy and the stock market this year. In a joint interview with CNNMoney, Sonders says she thinks the tax plan approved late last year will help more than people think, and says [...]
Read moreNygren: Growth & Value Not an Either/Or
February 9, 2011
0 Comments
Value vs. growth — when it comes to stock investing, it’s one of the biggest debates you’ll find. But top value fund manager Bill Nygren says that value and growth are actually two sides of the same coin. “I continue to believe that positioning value versus growth sets up a false comparison,” Nygren says in [...]
Read more
