Wells Capital’s Jim Paulsen says that while many have been focused on the recent trouble in tech and momentum stocks, the economy has been faring pretty well and may provide a nice boost for stocks.
Yale Economist Robert Shiller says that some tech stocks look and feel like they are in a bubble right now, but that it doesn’t seem as bad as the late 90s tech stock bubble. Shiller tells Bloomberg that the market overall is “on the high side and it’s being driven by technology recently, but it’s not like it was [in the late 90s].” He notes that his 10 year cyclically adjusted price/earnings ratio was nearly twice as high back then as it is now for the broader market. Shiller also talks about his belief that long-term value investing is the best approach to beating the market. And he talks about how using such an approach means you shouldn’t be impacted too much by high-frequency trading issues.
Nobel Prize-winning Yale Economist Robert Shiller recently appeared on WealthTrack and offered some of his thoughts on where he’s been finding value in the stock market.
Worried about the U.S. economy? Emerging markets? Europe? Kenneth Fisher says not to focus on short term problems, but instead the enormous long term potential he sees in play.
“Forget today’s myopic warnings of emerging markets meltdown, deflation death spirals, perma-stagnation and all the rest,” Fisher writes in The Financial Times. “In 20 years your world will be exponentially more prosperous and your quality of life immeasurably better.”
Charles Schwab Chief Investment Strategist Liz Ann Sonders says she thinks the market’s recent turnaround has more to do with a belief that weather has been behind some weak economic data than it does with a belief that a weaker economy will lead the Federal Reserve to slow its plan to taper its asset purchases. “There is a lot of indication that [the weak data] has been very dependent on the weather, but I also think we’re well past the point where the market is going to rally on negative news,” Sonders tells Yahoo! Finance’s Daily Ticker. Continue reading
Could historically high profit margins be the result of more foreign profits, making the high margins a new reality rather than anomaly? Fund manager John Hussman says the data says ‘no’.