Doll: Rally in “Transition Phase”

Blackrock Chief Investment Officer for Global Equities Bob Doll says that the stock market rally isn’t over, but that it has entered a new phase. Doll tells Bloomberg that last week’s jobs report was a sign that interest rates won’t stay at 0% forever, and that at some point the Federal Reserve will raise rates. That will mean an adjustment for the market, he says. “We don’t think it’s over. We just think we’re in… Read More

Inside Rodriguez’s Approach

A new Bloomberg article takes a look at First Pacific Advisors’ Bob Rodriguez, offering some insights into the strategy of the fund manager whose 15% average annual return over the past 25 years ranks #1 among diversified U.S. equity funds (according to Morningstar). Among the key parts of Rodriguez’s strategy, writes Bloomberg’s Charles Stein: He focuses on two or three industries at a given time; He looks for firms with market values between $1 billion… Read More

Tilson & Heins: Healthcare Fears Overdone

Add two more top strategists to those who say that healthcare reform fears are creating some bargains in the sector. In their latest Kiplinger’s column — a piece on contrarian investing — Whitney Tilson and John Heins say they think the healthcare fears are overblown. “Investors fear that health-care reform will hurt the entire industry, a key reason that the sector trades at just 12 times earnings, or 36% below the P/E of the S&P… Read More

Dorfman: Sectors for the Recovery

Is the recovery real? Yes, says John Dorfman. In his Bloomberg column, Dorfman — who was on target in calling the start of the stock market rally — says improvements in auto sales, existing home sales, and third-quarter gross domestic product are among many factors that point toward the recovery being for real. Given that position, Dorfman focuses on three sectors that he says usually lead in the early stages of recoveries: energy, materials, and… Read More

Time for Large Caps to Shine, Says Hulbert

With 2009 winding down, MarketWatch’s Mark Hulbert says many signs point toward large-cap stocks being the place to be. Hulbert says that in general, this time of year is a good time to invest in large caps. “In short,” he explains, “mutual fund managers’ compensation incentives induce them to underweight small-caps as year-end approaches and overweight large-caps.” That process starts well before December, Hulbert says, pointing to this past November as evidence (large caps almost… Read More

Hussman: 80% Chance of 2010 Plunge

John Hussman, whose funds have some of the better long-term track records in the industry despite missing out on much of the ’09 rally, says he sees an 80% chance of a market plunge and economic downturn in 2010. “This is not certainty, but the evidence that we’ve observed in the equity market, labor market, and credit markets to-date is simply much more consistent with the recent advance being a component of a more drawn-out… Read More

Berkowitz: There’s Value in Healthcare

Top fund manager Bruce Berkowitz says that though stocks are up some 60% off their March lows, there are still values left in the market — particularly in the healthcare sector. Berkowitz, whose Fairholme Fund has returned about 13% per year since its inception 10 years ago vs. about 1.1% for the S&P 500, tells CNBC that his firm is “very focused” on healthcare stocks, and that he thinks health insurers will be part of… Read More

Guru Strategy Rating Changes: Sinopec, Staples Rising

Each week, I take a look at which stocks my 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 that my strategies have upgraded or downgraded today. A number of well-known firms, including Staples and Sinopec, are on the move.

Birinyi Sees Dow 11,000 by Year-End — But Warns on Emerging Stocks

Laszlo Birinyi says the stock market rally isn’t done, but says individual investors should avoid emerging markets. Birinyi, who warned about bank stocks back in the fall of 2007, tells CNBC that he thinks the Dow Jones Industrial Average will reach 11,000 by year-end, and that the markets have a long way to run. “There’s still an awful lot of liquidity,” he said. “That’s why you see these rallies after a piece of bad news:… Read More

Yacktman Sees Opportunities in Media Stocks

Donald Yacktman, chief investment officer of Yacktman Asset Management and one of Morningstar’s finalists for fund manager of the decade, is seeing value in an unlikely area of the market: media stocks. Yacktman says media stocks like Viacom, Comcast, and News Corp. (all of which he owns) are still good values, despite having risen significantly this year. Overall, he says the best values right now involve businesses that are “very high quality”, not the junk-type… Read More