How much of our investment success or failure is a result of our genetic makeup? An intriguing new study attempts to answer just that question, The Wall Street Journal’s Jason Zweig notes on WSJ’s Total Return blog. The study, performed by finance professors Henrik Cronqvist of Claremont McKenna College and Stephan Siegel of the W.P. Carey [...]
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Buffett: Productive Assets Like Stocks Offer Most Safety — Not Bonds
February 9, 2012
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Over the past few years, investors have poured into low-yielding Treasury bonds, perceiving them as the safest place to be during the global economic tumult. But, according to Warren Buffett, bonds are one of the most dangerous places for investors to put their money over the long term — and that’s not going to change. [...]
Read moreDreman: Best Values in 30 Years
February 1, 2012
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Contrarian guru David Dreman says he’s finding stocks as cheap as they’ve been at any time since 1982. Dreman tells Forbes’Steve Forbes that he’s bullish because valuations are low and companies have good cash flows and financial positions that are as strong as they’ve been in years. (A tip of the cap to Zack Miller of Tradestreaming.com for [...]
Read moreRitholtz: A Different Take on Bulls and Bears
February 1, 2012
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Barry Ritholtz of FusionIQ and The Big Picture blog says he is bullish on stocks — but it’s not because of the economy. Ritholtz tells Yahoo! Daily Ticker that he started the year “as fully invested as we ever get,” despite “weakening fundamentals and the possibility of a recession”. The reason he’s bullish: Central banks [...]
Read moreGreenblatt: Less Is More In Portfolio Management
January 31, 2012
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The more you try to do with your portfolio, the worse your returns will often be, according to hedge fund guru Joel Greenblatt. In a column for Morningstar.com, Greenblatt explains why investors who tried to implement his “magic formula” investing plan by themselves have fared worse than those who have asked for the plan to [...]
Read moreAdvice from the Best — In 10 Words or Less
January 27, 2012
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Could you distill your investment philosophy into 10 words or less? In his latest post for The Wall Street Journal’s Total Return blog, Jason Zweig poses that question to some of the world’s most successful investors. Zweig says that when someone recently asked him the question, he “laughed and said, ‘Of course not!’ But right afterward, [...]
Read moreDreman Likes U.S. & Canadian Markets
January 27, 2012
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Contrarian guru David Dreman says he’s finding the biggest investing opportunities right now in North American stocks. Dreman tells Canada’s Globe and Mail that over the long term — the past 25 years — the S&P 500 has basically been in a dead heat with more glamorous foreign markets. And, he adds, “There isn’t a [...]
Read morePaulsen: Turn to Unloved Sectors in 2012
January 20, 2012
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Wells Capital’s Jim Paulsen thinks the European debt crisis will fade into a “chronic problem” rather than a crisis in 2012, which will help the economy and stocks perform better than expected. And that has him wary of “safe” stocks like consumer staples, utilities and dividend-paying large caps. “Not that they’re going to get killed, [...]
Read moreWhat the VIX Is Telling Investors
January 10, 2012
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In his latest MarketWatch column, Mark Hulbert says a successful timing model is showing that stocks are approaching “buy” territory. Hulbert looks at an approach that moves to an all-cash position whenever the CBOE’s Volatility Index (VIX) rises above its median level of just shy of 20, and buys stocks when the VIX falls back [...]
Read moreGrantham’s GMO Not As Gloomy On Stocks As You Think
December 30, 2011
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While Jeremy Grantham’s GMO has been gloomy about the outlook on stocks, the firm’s head of asset allocation says there are also good opportunities in the market right now. “We think there is money to be made,” Ben Inker tells The Boston Globe. “There’s plenty of stuff to be worried about. [But] there’s actually a [...]
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