Burton Malkiel, the Princeton economist known for his book A Random Walk Down Wall Street and espousal of the efficient market hypothesis, hasn’t changed his beliefs after the recent financial crisis and market meltdown. In an interview with CBS MoneyWatch, Malkiel talks about why the past decade has actually reinforced his belief that a portfolio of diversified stock index funds, bonds, and cash, rebalanced periodically, is the best option for investors.
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, including big names like Visa and BP.
In their latest Kiplinger’s column, Whitney Tilson and John Heins examine a 10-year-old Fortune magazine article to stress some of their core beliefs about investing — including the idea that buy-and-hold investing (or, perhaps more accurately, “buy-and-forget” investing) can be a dangerous practice. The Fortune piece, entitled “10 Stocks to Last the Decade”, highlighted 10 stocks that investors might add to their portfolios and be able to hold for the next decade, because these firms… Read More
Money manager and Forbes columnist Kenneth Fisher says we are in the early stages of a bull market led by foreign and emerging markets — and that investors should be very careful when it comes to buying up gold. In an interview with Wallace Forbes on Forbes.com, Fisher says that many make the mistake of being too U.S.-centric when looking at growth. “We’re at a point where it’s the emerging markets world with an emergent,… Read More
In a new interview with Minyanville.com, Oakmark fund manager Bill Nygren — whose fund is up 50% in the past year and ahead of the S&P 500 over the past 3, 5, and 10 years — says investors need to get back to basics. And for most, that means returning to stocks. “The thoughtful investor today, rather than thinking about how they missed the rally or remaining afraid of another lost decade, needs to get… Read More
Wharton Professor and author Jeremy Siegel says the financial sector restrictions being proposed by President Obama aren’t addressing the problems that caused the financial crisis and market meltdown of 2008. In an interview with Bloomberg, Siegel also says that part of the weakness in the market recently is related to the strengthening dollar, and he says that declines in oil prices to sub-$70 levels could provide the basis for another leg upward in the rally.… Read More
In a wide ranging interview with The Motley Fool web site, Charles Schwab Chief Investment Strategist Liz Ann Sonders says she thinks a correction will hit the stock market in the near term. She’s optimistic on the economy, however, and says current equity valuations aren’t bad. “I’m actually probably a little more optimistic than the consensus about the economy, but I think the market has more things with which it’s going to have to contend… Read More
In his year-end letter, Jeremy Grantham says that equities are once again significantly overpriced, and that investors haven’t learned the lessons of recent market crashes. But, he adds, stocks will likely head higher in the short term. “All investors should brace for the chance that speculation will continue for longer than would have seemed remotely possible six months ago,” writes Grantham. ” I thought last April that themarket (S&P 500) would scoot up to 1000… Read More
Hedge fund guru George Soros made a couple big statements Thursday, saying that China’s stock market is “overheating”, and that gold is becoming the “ultimate bubble”. “Right now, the Chinese market is overheating and they have to slow it down,” Soros said on Bloomberg Television. “It remains to be seen how successful they are.” As for gold, Soros says that low interest rates around the globe are creating an environment in which new bubbles have… Read More
David Herro, who was recently named one of Morningstar’s fund managers of the decade, says stocks are still cheap — especially compared to other asset classes. Herro says that during most downturns, his portfolios’ prices fall to about 50% of their underlying values. In the recent downturn, they fell to about 35%, he says, and after the recent rally, they’re trading in the mid-50% range — still near the levels typically seen in normal downturns.… Read More