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 [...]
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Doll: Long-Term Looks Good For Stocks, Short-Term Questionable
February 23, 2012
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Blackrock’s Bob Doll says the longer-term picture for stocks is a good one, though there may be some “corrective action” in the shorter-term. “Looking ahead, we believe the backdrop for risk assets remains a solid one,” Doll writes in his weekly commentary on Blackrock’s site. “The global economy is hardly experiencing boom conditions and remains [...]
Read moreFisher: 2012 “To Be As Rewarding As 2011 Was Frustrating”
February 8, 2012
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Kenneth Fisher, who correctly said 2011 would be a flattish year for the market with lots of volatility, sees a much better scenario developing in 2012. “Optimists are scarce, and ample skepticism is rampant — a bullish feature — providing a wall of worry for this bull market to climb,” Fisher writes along with several [...]
Read moreIs There A Hole In The CAPE?
February 2, 2012
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While some prominent strategists, including Jeremy Grantham and Robert Shiller, have pointed to the 10-year cyclically-adjusted price/earnings ratio (“CAPE”) as evidence that stocks (in particular the S&P 500) are very overvalued, Wharton Professor Jeremy Siegel says there’s a flaw in the metric. The flaw, Siegel said at a TD Ameritrade Institutional conference, involves the 2008 year, [...]
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 moreDoll Sees Double-Digit Returns in 2012
January 20, 2012
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Blackrock’s Bob Doll says there is more to the market’s strong recent performance than the “January Effect,” and says stocks are poised to gain ground in 2012 even if the economy doesn’t post strong growth. “In part, we believe the upward moves of the last two weeks can be attributed to the fact that many [...]
Read moreGloomy Rosenberg Sees Hopeful Sign for Stocks
January 20, 2012
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Top analyst David Rosenberg has been very bearish on the U.S. economy, and he hasn’t changed that stance. But he is seeing a ray of hope for stocks. “My fundamental view on the U.S. stock market hasn’t changed either — we are still in a bear market, marked by tremendous volatility,” Rosenberg writes for Canada’s [...]
Read moreHerro’s Reasons for Optimism
January 12, 2012
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Oakmark’s David Herro says that despite a tough year for his funds (which still have very strong long-term track records), he remains “extremely confident about the medium- and long-term future.” Herro says in commentary on his firm’s web site that the biggest challenge in the market right now may be volatility, which is being driven [...]
Read morePaulsen Sees Job Gains Having Domino Effect
January 9, 2012
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Wells Capital Management’s Jim Paulsen says he sees continued gains in job creation spurring a rebound in confidence that should lift many parts of the economy. Paulsen tells Bloomberg that for the first time in this recovery, we’re seeing job creation at a pace that should steadily decrease the unemployment rate. And that, he says, [...]
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