Miller Sees More Gains in 2010

Bill Miller — who once beat the market 15 years in a row — has bounced back strong this year after some recent woes. And moving into 2010, he’s sounding quite bullish. Miller, whose Legg Mason Value Trust is up about 35% this year, said while speaking at the London Stock Exchange that “the outlook in the US for equities is as good as it’s been for some time,” and that 2010 returns of 20%… Read More

Mobius: India Growth Likely to Continue — But “Dubai-Like” Hit Looms for Market

Templeton Asset Management Executive Chairman Mark Mobius says a recent visit to India has reinforced his belief that the country can keep up its growth rate, but he warns that overheated markets in India could lead to a “Dubai-like” situation or correction. “I confess that many [Indian stocks] currently do appear to be rather expensive,” Mobius writes on his blog. “With [the high] demand from Indian domestic investors, Indian stock prices have rebounded from their… Read More

Nygren: Values Are “All Over the Place”

Bill Nygren, whose three Oakmark funds have excelled in 2009 and have strong long-term track records, remains bullish as we head into 2010. Nygren tells CNBC that he’s “very positive” on stocks, and cites the high pessimism in the market as a big reason. He says there are values “all over the place”, and adds that his strong ’09 performance is attributable to staying disciplined through the market turmoil.

Siegel on Inflation, Interest Rates

Author and Wharton Professor Jeremy Siegel says he thinks the Federal Reserve will likely raise interest rates “modestly” by this coming spring — earlier than many expect. But, he tells Bloomberg, it will be some time before we see significant inflation. Siegel says that he thinks inflation won’t be much of a threat for a couple years, and that when it does kick in, it won’t come close to the double-digit figures some have predicted.… Read More

Market-Beating Manager Shifts to “High-Quality”

While much of the 2009 rally has been led by junk-type stocks, another top manager is saying that high-quality blue-chips are the place to be going forward. John Osterweis, whose Osterweis fund has beaten the S&P 500 by fairly wide margins over the past 1, 3, 5, and 10 years, is shifting his portfolio toward “mid-to-large sized companies with low debt levels that are capable of weathering prolonged economic headwinds,” The Motley Fool’s Chris Jones… Read More

Grantham: “Almost a Certain Bet” that Blue Chips Will Outperform

It’s been well documented how “junk”-type stocks have outperformed higher-quality issues during the huge run-up since the March lows. But in his New York Times column, Mark Hulbert provides some interesting statistics that show just how wide and anomalous the gap has been — and what that means for investors. Citing data from Ford Equity Research, Hulbert says that stocks in the bottom fifth of the 4,000 the group tracks in terms of “quality” (based… Read More

Doll: Rally in “Transition Phase”

Blackrock Chief Investment Officer for Global Equities Bob Doll says that the stock market rally isn’t over, but that it has entered a new phase. Doll tells Bloomberg that last week’s jobs report was a sign that interest rates won’t stay at 0% forever, and that at some point the Federal Reserve will raise rates. That will mean an adjustment for the market, he says. “We don’t think it’s over. We just think we’re in… Read More

Inside Rodriguez’s Approach

A new Bloomberg article takes a look at First Pacific Advisors’ Bob Rodriguez, offering some insights into the strategy of the fund manager whose 15% average annual return over the past 25 years ranks #1 among diversified U.S. equity funds (according to Morningstar). Among the key parts of Rodriguez’s strategy, writes Bloomberg’s Charles Stein: He focuses on two or three industries at a given time; He looks for firms with market values between $1 billion… Read More

Tilson & Heins: Healthcare Fears Overdone

Add two more top strategists to those who say that healthcare reform fears are creating some bargains in the sector. In their latest Kiplinger’s column — a piece on contrarian investing — Whitney Tilson and John Heins say they think the healthcare fears are overblown. “Investors fear that health-care reform will hurt the entire industry, a key reason that the sector trades at just 12 times earnings, or 36% below the P/E of the S&P… Read More

Dorfman: Sectors for the Recovery

Is the recovery real? Yes, says John Dorfman. In his Bloomberg column, Dorfman — who was on target in calling the start of the stock market rally — says improvements in auto sales, existing home sales, and third-quarter gross domestic product are among many factors that point toward the recovery being for real. Given that position, Dorfman focuses on three sectors that he says usually lead in the early stages of recoveries: energy, materials, and… Read More