How Your Brain Can Drag You Down — and How You Can Overcome It

Nature vs. nurture — it’s an eternal debate, and, as Jason Zweig shows in his most recent Wall Street Journal column, scientific research shows it’s a question that can have a great deal of impact on your investment style and decisions. Zweig writes that he recently volunteered as a guinea pig in Dr. Ahmad Hariri’s lab at the University of Pittsburgh, undergoing several different DNA analyses and brain scans. Hariri’s tests measure a variety of… Read More

Mortimer on “The Most Dangerous Words in Investing”

Charles Schwab Investment Management’s Chief Investment Officer Jeff Mortimer offered some interesting thoughts on the current market and keys to a good investment strategy in a Q&A with Washington Post readers today. One key thought from Mortimer, when asked whether his advice takes into account potential unprecedented events or situations: “The most dangerous words in investing are ‘it’s different this time.’ The world has had many issues before, and will again. It is important to… Read More

Top Fund Manager Eyes Small-Caps

John E. Deysher, whose Pinnacle Value Fund has outperformed 99% of its peers year-to-date and over the past year, three years, and five years, tells Barron’s that he’s been putting more cash to work, and says to look for a big bounce from small-cap stocks as the economy recovers. “Current stock prices reflect pretty dire economic circumstances,” Deysher said. “But, in general, businesses have been very responsible. They are bringing down inventories. They are paying… Read More

The Two-Pronged O’Shaughnessy Attack

In every other issue of my investment newsletter, The Validea Hot List, I look in detail at one of the computerized guru models I run on Validea.com. In this week’s issue, I outlined the growth/value strategy that James O’Shaughnessy found produced tremendous results over more than four decades. Below you will find an excerpt from the newsletter along with a handful of top-scoring stock ideas based on the O’Shaughnessy investment strategy. Taken from the April… Read More

Glassman: Choose History Over Hunches

In his latest Kiplinger’s column, former Under Secretary of State James K. Glassman says that — in spite of all of the troubling developments that have hit the economy and stock market over the past year or two — he still believes that the historical trend of the stock market producing strong long-term gains will continue. “Perhaps some profound change has occurred in the economic and social fundamentals that underlie financial investments, making history an… Read More

Oberweis on the Bullish Turn, Small Caps and … Han Solo?

Newsletter guru and money manager Jim Oberweis writes for Forbes.com that, although the economy will continue to struggle, he’s bullish — and that profitable growth stocks will be “ideally positioned” as first-quarter earnings roll in. “All told, we are still bullish on stocks, mostly because valuations remain significantly below historical averages, and we expect things to slowly get better,” Oberweis writes. “Even after the recent run, P/Es are very digestible.”

Dreman: Yes, It’s a Depression — So Buy

One of the investing world’s pre-eminent contrarians, David Dreman, writes in Forbes that the U.S. is indeed in a depression — not a recession — but says it’s also a good time to put money to work in the stock market. “Let’s not sugarcoat what’s going on,” Dreman writes. “We are in a depression, not a recession. It continues to devastate industry after industry like a wild forest fire leaping across the clearings.” Dreman says… Read More

Farrell Calls a Bottom (and Rips “Dr. Doom”)

In his latest MarketWatch column, Paul Farrell takes Nouriel “Dr. Doom” Roubini to task — and gives six reasons why he thinks the stock market has bottomed. Roubini, the New York University professor who predicted the financial crisis and has said he’ll be the first to call the recovery, “may go down in history … as the designated ‘one-hit wonder’,” Farrell writes. “But worse, any investor waiting for a Roubini ‘call’ is playing Russian roulette,… Read More

Whitman Finding Bargains through Graham & Dodd, with a Twist

The Financial Post of Canada takes an interesting look today at the Benjamin-Graham-esque approach that longtime market-beater Marty Whitman uses to pick value stocks. According to The Post’s Levi Folk, Whitman’s strategy is based on the “net-net” approach that Graham and David Dodd laid out in their 1934 classic Security Analysis. (Net-nets are firms whose liquidation values are significantly greater than their market capitalizations, after all liabilities are factored in.) Whitman — who “is finding… Read More

Gross: Investing “Revolution” Is On

In his April market commentary on PIMCO’s web site, bond guru Bill Gross says that we’ve entered a new world of economics and investing, one in which “there should be no doubt that the bull markets as we’ve known them are over and that the revolution is on. Investing is no longer child’s play.” Gross says that the future of investing will depend on the future of the global economy, and the future global economy… Read More