Greenblatt, Buffett Strategies Big Winners in ’09

For stocks, 2009 was one of the most eventful years ever. From the widespread fears of financial Armageddon that pounded the market at the beginning of the year, to the signs of “green shoots” of hope, to one of the strongest and swiftest market rallies in history, a myriad of factors caused stock prices — and investors’ emotions — to swing wildly. In the end, the market ended up well in the black, and our… Read More

Biggs Still Bullish, Warns Against “Bubble Watching”

Hedge fund guru Barton Biggs says he remains bullish on stocks, despite the factors that have spooked some investors in recent days. Biggs tells Bloomberg that the U.S. economy is in a “strong recovery”, and that he thinks the U.S. will grow in the 5% to 5.5% range in the next couple quarters. He also says valuations on stocks remain attractive. Among the areas he’s high on: large, high-quality technology stocks, large, multi-national growth plays,… Read More

Arnott on Why the 2000s Didn’t Have to Be a “Lost Decade”

It’s no secret that the 2000s was a bad decade for the major U.S. stock market indices. The S&P 500 lost an average of 1% per year, some 3.6 percentage points worse than inflation, making it the worst decade for real returns on record. But in a recent paper, Research Affiliates’ Rob Arnott notes that the broader market’s struggles didn’t mean that the 2000s were a lost decade for investors. According to Arnott, investors who… Read More

Doll: Stimulus Still Offers “Wind” at Investors’ Backs

In the latest episode of Consuelo Mack’s WealthTrack, BlackRock Global Chief Investment Officer of Equities Bob Doll says government stimulus is still providing a wind at the market’s back, and that investors shouldn’t forget that. Doll says he’s a stock picker who also looks at macro factors, and continued stimulus impact is one of the macro factors behind his current bullishness. “That’s a wind at our back,” he said of the stimulus plans put in… Read More

What Really Drives Stock Gains?

In an interesting new study, MSCI Barra takes a look at what drives stock returns over the long haul — and the results might surprise you. In the study (click here for an HTML version; click here for a PDF version), Barra traces stock market returns to a handful of sources: inflation, dividend income, real book value growth, and price-to-book growth. Their findings, which covered the U.S., Europe, Japan, Australia, and the U.K.: In most… Read More

Buffett on Investors’ Greatest Mistake

In a wide-ranging interview with CNBC, Warren Buffett says he thinks there is support for the huge gain in stocks we’ve seen over the past 10 months, and stresses that investors shouldn’t try to time the market. “There has been a lot of things that have been cleaned up in the economy in the last 18 months,” Buffett says. “A lot of the toxic assets are in better shape. There are going to be 4.5… Read More

Gabelli likes Natural Gas, Auto Parts

Gamco’s Mario Gabelli says he’s looking at natural gas firms and auto parts companies as we head into 2010. Gabelli tells CNBC that the U.S. is “tired of depending on the Middle East” for energy needs, and that companies like National Fuel & Gas can benefit from that sentiment. He also expects the auto industry in the U.S. will enjoy three or four years of increasing production, and offers some ways to play that part… Read More

Hulbert on Why You Shouldn’t Fear the Presidential Cycle

Conventional wisdom holds that the second year of a U.S. president’s term in office — which, for President Obama, began this week — tends to be a bad one for stocks. But in his latest MarketWatch column, Mark Hulbert says that’s a misconception, and that the “presidential cycle” likely won’t have much effect on the market this year anyway. Hulbert looks at the Dow Jones Industrial Average’s returns by presidential year over two periods: 1896… Read More

Tilson Down on Housing, Bullish on Berkshire

Whitney Tilson of T2 Partners says that Berkshire Hathaway is a buy, and says he thinks the housing market is headed for trouble. Tilson, one of the few to call the housing bust ahead of time, says he doesn’t think the housing market will see a “calamity”, but he does think millions more foreclosures are coming down the pipeline in the next couple years. He’s shorting housing-related stocks, with homebuilders being at the top of… Read More