In his latest article for Canada’s Globe and Mail, Validea CEO John Reese takes a look at the “Dogs of the TSX”. Noting the historical success of the well-known “Dogs of the Dow” strategy — in which one buys the ten highest-yielding stocks in the Dow Jones Industrial Average, and rebalances the portfolio once a [...]
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Archive | April, 2011
Davis’ Tips for How to Identify a Market Top
April 15, 2011
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How do you identify times when the stock market is nearing a top? Ned Davis of Ned Davis Research uses several metrics, and, right now, on balance, they’re indicating the bull market has more room to run. “There are a number of things about this market that concern me as a risk manager,” Davis recently [...]
Read moreBond Guru: “Moment of Truth” Coming
April 15, 2011
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Top bond fund manager Jeffrey Gundlach says the “the moment of truth for this year’s investments” will come at the end of June, when the Federal Reserve’s second round of quantitative easing comes to an end. “QE2 was obviously designed to help the economy,” Gundlach tells CNBC. “If it [QE2] helps the economy and it [...]
Read moreO’Shaughnessy on How Inflation Impacts Stocks, Bonds
April 14, 2011
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Given the huge growth in monetary supply that the Federal Reserve has overseen in an effort to combat the financial crisis and Great Recession, many top strategists — including Warren Buffett, John Paulson, and Bill Gross — have said that they expect significant inflation to hit the U.S. at some point. And if that’s the [...]
Read moreAkre Cautious, But Finding Values
April 13, 2011
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Top value investor Chuck Akre says he’s remaining cautious on the stock market, though he’s finding a number of picks that he says are low-risk, high-reward options. “The US is in a slow recovery,” Akre recently told Louis Rukeyser’s Wall Street (a tip of the cap to Nasdaq.com’s Jim Fink for highlighting the interview). “I’m [...]
Read morePaulson Sees Weak Housing Market
April 13, 2011
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John Paulson says weakness in the housing market is posing a threat to the U.S. economic recovery. “In my eyes, the major risk for the American recovery is the stagnation of the residential real-estate market,” Paulson told French newspaper Les Echos, according to Reuters. “It will be difficult to have a rebound in real-estate prices [...]
Read moreGuru Strategy Rating Changes: Petrobras Rising, GSK Falling
April 12, 2011
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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 moreCooperman Still Optimistic on Stocks
April 12, 2011
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Hedge fund guru Leon Cooperman says he’s still optimistic on the stock market, though his optimism has been tempered a bit recently. Cooperman (whose market commentary starts around the 10 minute mark of the interview) tells CNBC that stocks as a group are attractively valued, particularly given the low-interest-rate environment we’re in, and he says [...]
Read moreSoros Talks China, Dollar, Inflation
April 11, 2011
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Hedge fund guru George Soros says inflation in China is a serious concern, and says the Asian power made a mistake in not letting its currency appreciate in value. Soros also tells Bloomberg that the U.S. dollar has lost its place as the world’s reserve currency, with other currencies like the Euro and even commodities [...]
Read moreThe Shiller P/E: In Need of a Revision?
April 11, 2011
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Does the “Shiller P/E” need a revamp? Some well-known strategists say yes, but others — including Yale Economist Robert Shiller himself — say no. While most strategists and publications use shorter-term earnings in developing price/earnings ratios, the Shiller P/E — also known as the 10-year P/E — compares a company’s average earnings over the past [...]
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