Templeton Asset Management’s Mark Mobius says that the combination of low-yielding fixed-income investments and looming inflation fears will have investors moving out of Treasurys and into stocks. “People are now beginning to realize that they cannot be sitting on bonds that are paying one, two or even three percent, when inflation is running higher than [...]
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Biggs Getting More Bullish
March 22, 2012
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Hedge fund guru Barton Biggs has been increasing his exposure to stocks, saying that their relative attractiveness compared to bonds and fixed-income investments will drive investors toward them. “I’ve been gradually increasing and I’m up to 90 percent [long on stocks] now,” Biggs said on Bloomberg Surveillance with Tom Keene. “There is an awful lot [...]
Read moreTop U.K. Manager Bullish on U.S.
March 19, 2012
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Top U.K. fund manager Robin Geffen has increased his Neptune Global Equity fund’s U.S. allocation to its highest level ever, saying that the American economy stands out among other developed economies. “It has the highest estimated GDP growth, a supportive Federal Reserve and a willing and active government which is ready and able to intervene [...]
Read moreDreman: Bond Bubble Will Hurt Many
March 14, 2012
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Contrarian strategist David Dreman says a “major bubble that will hurt a lot of people” has formed in the long Treasury bond market. “Ten-year Treasuries are yielding about 2%, while 30-year Treasuries are at 3%,” Dreman tells Morningstar.com. “Adjusting for inflation and taxes, this has almost never happened before. In the rush to Treasuries after [...]
Read moreAre Stocks Really A Good Inflation Hedge?
March 9, 2012
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Conventional wisdom is that stocks are a good hedge during inflationary periods. But some prominent financial researchers say the belief is off the mark. “When inflation has been moderate and stable…equities have performed relatively well,” Elroy Dimson, Paul Marsh, and Mike Staunton of the London Business School write in the 2012 Credit Suisse Global Investment [...]
Read moreNygren: More Gains to Come
March 5, 2012
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Top-performing fund manager Bill Nygren of Oakmark says he sees a number of reasons why stock returns this decade will “far surpass” those of the previous decade. “We think there are more profits to come,” Nygren writes in a letter to shareholders, noting that all three of Oakmark’s domestic funds are now at all-time highs. [...]
Read moreBuffett On Stocks, In-Laws, and Why He Wants Some of His Stocks to Fall
March 2, 2012
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In his recently released fourth-quarter letter to Berkshire Hathaway shareholders, Warren Buffett reiterates his belief that stocks are a much better investment than gold or bonds, and explains why he sometimes hopes his equity holdings decline in price. The portion of Buffett’s letter in which he explains his belief in stocks over bonds and gold [...]
Read moreShiller on Stocks, Housing
March 2, 2012
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Yale economist Robert Shiller, one of the few to foresee the bursting of both the Internet and housing bubbles, says that while stocks are pricey right now, he still prefers them over inflation-indexed bonds over the long haul. “Stocks,” Shiller told the Associated Press when asked whether he would rather have his money in stocks [...]
Read moreGrantham: Investment Outlook “Not Bad At All”
March 1, 2012
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GMO’s Jeremy Grantham has released his fourth-quarter letter, and, while the often-gloomy strategist focuses a good deal on the troubling flaws of the existing capitalist system, his investing outlook paints a fairly attractive picture. “The majority of global equities are within spitting distance (a technical term) of fair value,” Grantham writes. “Only the S&P 500 [...]
Read moreGross vs. Cooperman on Treasurys
February 24, 2012
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Are Treasury bonds a good place to be, or quite dangerous? Two top strategists — Bill Gross and Leon Cooperman — have very different takes. Hedge fund guru Cooperman tells Bloomberg that Treasurys will be the worst place to put their money for the next three years. He says the Federal Reserve is trying to [...]
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