Emerging markets guru Mark Mobius says he’s not too worried about Europe’s financial woes triggering a global recession. “We just don’t see any cause for alarm in the sense of things completely drying up and there being a situation where nobody buys anything,” Templeton Asset Management’s Mobius told Bloomberg. “We don’t see a let-up in [...]
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Archive | November, 2011
O’Shaughnessy: Look to Consumer Staples
November 15, 2011
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Quantitative strategy guru James O’Shaughnessy says that he’s finding value in consumer staples, and that history shows the sector is actually one of the best places to look in most economic climates. ”When you think about it, [it] makes a lot of sense,” O’Shaughnessy tells CNBC. “During hard economic times, people still have to eat, they [...]
Read moreMore Evidence that Correlations Haven’t Really Changed
November 14, 2011
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Recently we highlighted an article from Mark Hulbert that detailed why talk of a new era of higher correlations among stocks is misguided. Now, The Wall Street Journal’s Jason Zweig offers more data showing that, when it comes to the correlation of the U.S. market with other markets, perception and reality are very different. Zweig [...]
Read moreBuffett Bullish on Big Blue, Says Housing in “Depression”
November 14, 2011
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Warren Buffett’s Berkshire Hathaway has taken a 5.4% stake in tech sector giant IBM, and he remains upbeat on equities over the long haul, though he says a “depression” in the housing sector is holding back the economy. Buffett tells CNBC that IBM has done a very good job of publicly laying out goals and [...]
Read moreTop U.K. Manager Sees Trouble for Economy, But Not for Stocks
November 11, 2011
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Neil Woodford, the U.K. manager whose fund has posted very strong results over the past year and over the long term, thinks Europe is headed for recession, but thinks equities will offer good opportunities despite the economic turmoil. ‘The backdrop is very difficult and there’s huge volatility, but through that volatility the predictable, high-quality, undervalued [...]
Read moreFisher’s Price/Sales Approach Still Crushing Market
November 11, 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 Kenneth Fisher-inspired strategy, which has averaged annual returns of 11.7% since its July 2003 inception vs. 2.5% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring [...]
Read moreReese: There’s Value in Healthcare
November 11, 2011
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After rebounding earlier this year from a lengthy period of underperformance, health care stocks have found themselves lagging again over the past month or so. And that, Validea CEO John Reese says, is helping create some buying opportunities. “My guru strategies have taken note by taking advantage of relatively lower prices,” Reese writes in a [...]
Read moreAn Unlikely Tech Stock Fan
November 11, 2011
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Donald Yacktman, who for more than a decade has posted one of the best track records of any mutual fund manager, is finding big value in an area he once shunned: tech stocks. “If someone had told me 10 years ago that these stocks would be in my portfolio, I would have laughed,” Yacktman, who [...]
Read moreECRI Chief: We’re Tipping into Recession
November 10, 2011
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The Economic Cycle Research Institute’s Lakshman Achuthan, whose group has a strong track record of forecasting economic cycles, continues to think we’ve been “tipping into a recession” since September. Achuthan tells CNBC that ECRI sees a “contagion among the forward-looking indicators” that the group looks at to forecast economic movements, though he declined to discuss [...]
Read moreSonders on the “Real Mortgage Rate”
November 10, 2011
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While many news outlets and pundits have been reporting on how historically low mortgage rates could spur housing demand, Charles Schwab’s Liz Ann Sonders says that they’re missing a big point. In a Financial Times column, Sonders says that people always focus on the nominal mortgage rate. But, she says, there’s a “real rate” for [...]
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