Forester on Tech Stocks, Financials

Tom Forester of the Forester Value fund says he’s still finding value in the market after the big run-up, and one area he’s focused on is technology. In an interview with CNBC, Forester says he likes value tech stocks, citing Microsoft and HP as companies that look attractive. “We think in almost any kind of market there’s ways to make money,” he said, noting that his fund gained 70% over the past decade while the… Read More

Leuthold on Stocks, Gold, and the Demise of the Euro

We recently highlighted Steven Leuthold’s 2010 outlook, noting that the longtime bear who turned bullish last year is optimistic on the first half of the new year, but pessimistic on the second half. In a recent speech highlighted by Advisor Perspectives, Leuthold expanded on that outlook and offered his thoughts on the current market. He says that stocks are currently trading for about 16.5 to 17.5 times normalized earnings — “not richly valued but somewhat… Read More

Barron’s Roundtable: Gabelli, Zulauf Weigh In

Barron’s has tapped a number of top strategists for its annual start-of-the-year “Roundtable” feature, with gurus such as Bill Gross, Mario Gabelli, and Abby Joseph Cohen offering their takes on where the market and economy are headed in 2010. And, overall, the outlook is positive. “Our crowd thinks the market could gain another 5% to 20% in 2010, fueled by profit growth and continued government spending,” writes Barron’s Lauren R. Rublin, “although the ride will… Read More

What Works in Year Two of a Bull?

James O’Shaughnessy’s What Works on Wall Street details one of the most extensive studies of stock returns and stock-picking strategies ever performed. Now, as we approach the second year of what appears to be a bonafide bull market, O’Shaughnessy’s firm has new data on what works during different stages of bull markets. In a piece written for O’Shaughnessy Asset Management’s website, Patrick O’Shaughnessy says that OSAM’s research has found significant trends in the types of… Read More

Berkowitz on Ignoring the Crowd

Bruce Berkowitz, whose Fairholme fund has produced exceptional long-term returns, says the reason it has fared so well is a willingness to go against the crowd. Berkowitz also tells Bloomberg that he focuses on the amount of cash companies are producing, an approach that led him to shy away from financial stocks during the sector’s 2008 meltdown. [youtube=]

Zandi: More Stimulus Needed

Moody’s Chief Economist Mark Zandi says that more stimulus is needed to ensure the U.S. doesn’t slip back into recession. Zandi tells Bloomberg that inflation will be no threat in 2010 or 2011, and that the government needs to do what is necessary to make sure the economic recovery turns into sustained expansion, rather than worrying about inflation that won’t hit for another couple years. He also says the financial crisis that hit in… Read More

Validea’s Reese High on High-Quality Stocks

In his latest column for Canada’s Globe & Mail, Validea CEO John Reese says that investors would be wise to focus on “high-quality” stocks, particularly given current market conditions. Reese notes that in financial crises, “junk” stocks tend to get hit particularly hard, because companies with weak balance sheets are least likely to survive a depression or major recession. Fear drives their prices down, sometimes to irrationally cheap levels. Then, when the crisis passes and… Read More

Fisher on which Sectors to Target

In an interview with Bloomberg, Kenneth Fisher says that he’s high on some chemical stocks right now, for both fundamental and cyclical reasons. Fisher says the stocks that usually lead early in a bull market are those that fared well in the first half of the preceding bear market, but then got hammered in the second half of the bear. In the current case, that means materials — of which chemicals are a subset —… Read More

Gross: Where to Look when the Easing Ends

For much of the past year, Bill Gross of bond giant PIMCO has advocated “shaking hands with the government” — that is, investing in areas that benefit from the government’s massive bailout and stimulus efforts. Now, Gross says 2010 will be a year in which investors should ask “which government” they should shake hands with — and his answer might surprise you. In his latest Investment Outlook on PIMCO’s web site, Gross — in addition… Read More