While she’s known for her bearish calls, including her prescient prediction of the banking crisis that hit the U.S. in 2008, analyst Meredith Whitney says she’s seeing “incredible opportunities” for investors right now. “Fundamentals are not playing into valuations now at all,” Whitney says, according to CNBC. “You’ve got great companies that are trading horribly, [...]
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Archive | September, 2011
Arnott on Why the Valuation Picture Is Troubling
September 16, 2011
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Interest rates and inflation have a much greater role in stock market valuations than you might think, and that means the stock market is on a “very dangerous” path, according to Rob Arnott. In an article for Morningstar, Arnott, of Research Affiliates and PIMCO, looks at the relationship between stock market valuation levels, interest rates, [...]
Read moreThe Lynch Approach: GARP, PEGs, and Profits
September 16, 2011
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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 Peter Lynch-inspired strategy, which has averaged annual returns of 6.4% since its July 2003 inception vs. 2.1% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring [...]
Read moreGuru Strategy Ratings: Best Buy, JetBlue On The Move
September 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 moreHussman: Recession Now “Virtually Certain”
September 13, 2011
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Fund manager John Hussman says a new recession — and a Greek debt default — are now “virtually certain”. In his latest market commentary, Hussman says that the markets seem to be viewing the current situation as a replay of the 2010 correction, and are holding out hope that the Federal Reserve will launch another [...]
Read moreHulbert: History Says Value Stocks May Be Ready To Rebound
September 13, 2011
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MarketWatch’s Mark Hulbert says that a couple of historical factors are indicating that value stocks may be ready to finally start outperforming growth stocks again. Hulbert notes that value stocks, which over the long term have enjoyed a significant edge over growth stocks, have lagged their growth peers for the past few years — the [...]
Read moreAre Stock Prices Already Factoring In An Earnings Slowdown?
September 13, 2011
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Michael Lipper, a former president of the New York Society of Security Analysts, says he thinks stocks are already pricing in a slowdown in sales growth and a decrease in profit margins. “One of the many lessons that I learned from John Neff, who was the great portfolio manager of the Windsor Fund, (now known [...]
Read moreWhy The Coming Decade Should Be Good For Stocks
September 13, 2011
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Financial historian and NYU Stern School of Business Professor Richard Sylla — who in the late 90s predicted that the next decade would be a weak one for stock returns — says history shows the market is likely to make some nice gains in the coming decade. “People ought to take a longer view and [...]
Read moreSonders: Want Job Growth? Provide Regulatory Clarity
September 12, 2011
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Charles Schwab Chief Investment Strategist Liz Ann Sonders sees weak growth for the U.S. for “quite some time” — though she doesn’t see another recession on the horizon — and says eliminating regulatory uncertainty is a key to stabilizing the business climate and creating jobs. “Slow growth at best,” Sonders says of her expectations for [...]
Read moreThe Not-So-New Macro Investing World
September 12, 2011
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For investors, much of the decade since the September 11 attacks seems to have been dominated by an unprecedented slew of troubling macroeconomic issues: terrorism fears, a financial crisis, natural disasters like Hurricane Katrina and the earthquake and tsunami that rocked Japan, to name a few. But such macro events are nothing new, The Wall [...]
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