Many Technical Strategies Didn’t Escape Meltdown — And Now Lag S&P

The recent struggles of many top fundamental-focused stock-pickers — Warren Buffett, Bill Miller, David Dreman — have been well-documented. But according to Bloomberg, many technical-based stock-selection strategies have also been hammered during the recent bear — and now are significantly lagging the market in the rebound. “Ever since the Standard & Poor’s 500 Index peaked in October 2007, six of eight [popular technical] strategies — which are supposed to make money whether stocks rise or… Read More

What Will the Recovery Look Like?

A “U”, a “V”, an “L” — Time magazine takes a look at what we might expect in the coming economic recovery, with insight from top strategists such as Peter Lynch and Jean-Marie Eveillard. A sampling of the advice: Lynch says that waiting for a major economic recovery to occur before jumping back into the market can cost you a lot. “People think that things need to go from terrible to terrific before they can… Read More

Schwab Strategists: Rally Will Hold

Two top Charles Schwab strategists — Chief Investment Officer Jeff Mortimer and Portfolio Manager Paul Alan Davis — said today that the current rally is for real, and that long-term investors should be putting money into equities. Mortimer tells Yahoo! TechTicker that the March 9 low had fundamentals similar to those of the 1974 and 1982 bear market lows, and says he thinks the bulls will continue to run. For those who didn’t catch the… Read More

Grantham: S&P 1000-1100 by Year-End — Then Trouble

GMO Chairman Jeremy Grantham released his first-quarter letter today. While Grantham reiterates some of the points GMO made in its first-quarter update (which we reviewed yesterday), he adds a good deal of new predictions and analysis, and his exceptional track record merits a quick look at some of his key points, beginning with the good news: Grantham sees it as “about 80% probable” that the massive global stimulus programs will “kick up” the economies of… Read More

Shiller: Be in Stocks & Real Estate, Despite Risks

Yale economist and housing-bust-predictor Robert Shiller says that, while housing and stock prices could well go lower in the short term, now is a good time for investors to be in both equities and real estate. “I’m less pessimistic than I was a few months ago,” Shiller told Bloomberg when asked about stocks. “The price-earnings ratio is about average, and by that you might say it sounds like one should be in the market and… Read More

Matthews: Credit Markets Show Recovery Is for Real

Jeff Matthews, the longtime money manager, told Yahoo! TechTicker today that he thinks the economic recovery and stock market turnaround may well be for real. The key to a recovery, says Matthews — who also maintains the popular “Jeff Matthews Is Not Making This Up” blog — is the credit markets. And, he says, “I think we’ve seen plenty of signs that [the credit market market turnaround] is here, and it’s for real.”

GMO: International Equities Promising, Govt. Bonds Dangerous

Jeremy Grantham’s GMO has released its first-quarter 2009 update, and the firm says it will continue to put money back into equities, though with a cautious approach. “Having increased our exposure to equities last quarter, we kept to our game plan and gingerly shifted our stance toward favoring riskier asset classes,” GMO states. “Our concern about the broader economic picture, however, prevented us from deploying toward more speculative areas of the market, and we did… Read More

Buffett Talks Recovery, Bonds, and Banks

A myriad of Warren Buffett-related headlines have been coming out of Berkshire Hathaway’s annual meeting, ranging from Buffett’s thoughts on the economy to Berkshire’s succession plans to just what Buffett’s mood is these days. Among the more relevant stories is Buffett’s latest take on the economy, which he tells CNBC is “slow, very slow, and at the moment, still getting slower.” Buffett says we’ll see more unemployment in the short term and inflation in the… Read More

Gross on Haircuts, Shared Burdens, and those Green Shoots

In his latest Investment Outlook column on bond giant PIMCO’s web site, Bill Gross says that the recent crisis — and the government’s response to it — has changed the financial landscape, and that investors must be cognizant of the new economic and investing world that has been created. President Obama’s comments on the recent bankruptcy announcement of Chrysler, Gross says, have highlighted Obama’s populist streak. And, while he doesn’t seem to be criticizing that… Read More

Gabelli and Munger on the Economy, Markets

“Woodstock for Capitalists” — the annual meeting of Warren Buffett’s Berkshire Hathaway — has been going on throughout the weekend in Nebraska, and Buffett’s comments have already made a lot of headlines. (More on those comments later today.) But Buffett isn’t the only one dishing out pearls of investment wisdom at the Omaha event. In separate interviews with CNBC, Mario Gabelli and Berkshire Vice Chairman Charles Munger — two Buffett fans who have compiled tremendous… Read More