In his latest article for Canada’s Globe and Mail, Validea CEO John Reese discusses the role that expectations have in the stock market, and in the tendency for value stocks to outperform flashier growth plays. Comparing hot growth stocks to big summer blockbuster movies, Reese writes, “If you’re like me, you’ve probably had the [...]
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Archive | June, 2011
Leuthold Sees “Significant” Rally; Focuses Overseas
June 16, 2011
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Steven Leuthold says he thinks the market has hit its high point for the year, but he also says it’s no time to sell, as he thinks we’re nearing a significant rally. Leuthold tells Bloomberg that he thinks the S&P 500 is “very close to median valuations levels”, and that he’s probably going to soon [...]
Read moreBerkowitz on Ignoring the Crowd
June 16, 2011
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In a wide-ranging three-part interview with Morningstar’s Don Phillips, top value investor Bruce Berkowitz discusses several aspects of his investment approach, including the willingness to go against the crowd and the decision to run a focused portfolio smaller than those of many other mutual funds. “At the end of the day, investing is about one [...]
Read moreBirinyi Still a Big Bull
June 15, 2011
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Bullish strategist Laszlo Birinyi, who has said he expects the S&P 500 to rise to 2,100 over the next several years, isn’t deterred by the market’s recent day-to-day movements. “We’re not going to get terribly concerned about the day-to-day squiggles,” Birinyi told MarketWatch. “One thing that has kept us in this market is that the [...]
Read moreGuru Strategy Rating Changes: Intel Rises, AstraZeneca Slides
June 14, 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 moreForester Looks for Downside Protection
June 14, 2011
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Top value investor Tom Forester, who was the lone equity fund manager to post positive returns in 2008, is worried about the U.S. and global economies and is thus keying on high-quality stocks that can weather tough times. “The U.S. is running out of room to run deficits or print money,” Forester said at the [...]
Read moreAre We Headed for Inflation? Deflation? Stagflation? Try “Screwflation”, Kass Says
June 14, 2011
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While the 1970s were marred by “stagflation”, money manager and columnist Doug Kass says the U.S. is now being hit by “screwflation” — that is, the combination of inflation and the “screwing of the struggling middle class”. “While the U.S. economy, in real terms, has more than doubled in the past 30 years and corporate [...]
Read moreGreenblatt on Why Fund Managers Fail
June 13, 2011
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In an article for RegisteredRep.com, hedge fund guru Joel Greenblatt takes a look at why so many mutual funds fail to beat the market averages over the long haul, and offers tips for how the “little guy” can beat the market. One big thing that hurts mutual fund performance, Greenblatt says, is fund fees, which [...]
Read moreSonders: Fed Should Lay Off Further Easing; Economy to Improve
June 10, 2011
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Charles Schwab Chief Investment Strategist Liz Ann Sonders says she’s not in favor of another round of quantitative easing from the Federal Reserve, and remains positive on the economy and stock market. “It’s high time we just chill for a little bit and see if the economy can stand on its own,” Sonders, a participant [...]
Read moreBerkowitz Still Confident in Financials
June 10, 2011
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Bruce Berkowitz remains high on financial stocks, and says his conviction about his financial holdings has only grown stronger. “I’ve been able to see their earnings for the past few quarters, the trends are getting better, the balance sheets are building, tangible book value is growing,” Berkowitz tells Bloomberg from the Morningstar Investment Conference. “The [...]
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