While the recent market turmoil has led some to predict that a new a bear market is coming, top strategist Liz Ann Sonders of Charles Schwab thinks otherwise. “We have more of an internal correction among high-flying stocks,” Sonders tells Bloomberg TV. “There are some high flyers within small segments of the market but it is neither infecting the market from a valuation perspective nor likely to bring the entire thing down.” Sonders says too many comparisons are being made to the 2000 era, when valuations were exponentially higher than they are now.
Mark Faber of the Gloom, Boom & Doom Report is currently leaning decidedly to the “gloom” side when it comes to 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.
In the latest episode of WealthTrack, financial columnists Jason Zweig and Jonathan Clements of The Wall Street Journal talk about how long-term investors can find income in a low-yield world.
David Herro has been one of the top fund managers in the world for over a decade, and he says emerging markets are looking overvalued even after recent declines.
Each week, we take a look at which stocks John Reese’s Validea.com Guru Strategy computer models have newfound interest in, and which they have soured on. Here’s a look at some of the stocks John’s strategies have upgraded or downgraded today.
Investors spend a lot of time worrying about — and often acting on — the latest economic reports. But Barry Ritholtz says what they most often should do in such situations is nothing.