Strategist Ed Yardeni says that the “New Normal” scenario that has been promulgated by Bill Gross and PIMCO is off base — and says recent economic data proves it. “While Bill Gross sees a world full of new normals and paranormals, the old normal business cycle continues to show that it is still in gear,” [...]
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Sonders: Recovery Becoming Self-Sustaining
February 17, 2012
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Charles Schwab’s Liz Ann Sonders, whose calls on the start and end of the Great Recession proved very accurate, says she thinks the U.S. economy is entering the second phase of its recovery, with the recovery becoming self-sustaining. “I don’t want to say we’re off to the races again, because I don’t think we’re going [...]
Read moreSiegel: No Surprise If Dow Passes 15,000 This Year
February 17, 2012
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The European debt crisis and America’s own debt troubles are keeping many investors away from stocks. But author and Wharton Professor Jeremy Siegel says the odds are in favor of the market making some impressive gains in the coming years. “Many stock bulls are calling for a 10% to 15% gain this year,” Siegel tells [...]
Read moreIndex Battle: S&P 500 vs … S&P 500?
February 8, 2012
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Investors have been waiting for more than four years now for the S&P 500 to eclipse its October 2007 high. But, according to SmartMoney’s Jack Hough, the index has already done so and is on the verge of doing it again. Well, sort of. “The Standard & Poor’s 500-stock index — “the market” to many [...]
Read moreThe Year-End Guru Report: Growth and Momentum Trump Value — For Now
February 3, 2012
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While 2011 was a tough year for the broader market and value-focused strategies, some growth and momentum approaches fared quite well, according to a new report from Validea.com and John Reese. (Click here for a PDF copy of the report.) Two of the top-performing growth-focused approaches in 2011 were Reese’s Momentum Investor strategy and his [...]
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 moreTop Forecaster: Market Fundamentals Best in 20 Years
January 24, 2012
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Top forecaster Norman Fosback says “the market’s fundamental position has evolved to the most favorable alignment in 20 years,” and sees big gains for stocks over the next year and the next five years. Fosback, who served as head of the Institute for Econometric Research for three decades, has a “long and eminent a record”, [...]
Read moreReport: Stocks Cheapest Since 1990
January 23, 2012
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Stocks are cheaper than they’ve been in more than two decades, according to a new report from Bespoke Investment Group. According to CNBC.com, Bespoke says in its 2012 outlook report that it expects stocks to rise 11%, and perhaps more, in 2012 as investors realize how attractive valuations are. “The S&P 500 is currently trading [...]
Read moreSiegel on Dividends — and Why So Many Missed the Crash
January 18, 2012
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Author and Wharton Professor Jeremy Siegel says dividends could — and should — be coming back into favor. In an interview with The Motley Fool’s Morgan Housel, Siegel discusses the reasons why dividend payouts have declined over the years, including tax issues and the fact that the rise of stock options as compensation have given [...]
Read moreThe 90% Debt/GDP Threshold: Reality or Myth?
January 12, 2012
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Over the past year-and-a-half, many prominent strategists have cited the research of Carmen Reinhart and Kenneth Rogoff in contending that the U.S. will be in big trouble if its debt-to-GDP ratio climbs past 90%. But Robert Huebscher, the founder of Advisor Perspectives, says they are misreading Reinhart and Rogoff’s research. The problem, Huebscher says, is [...]
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