Newsletter guru Jim Oberweis says he thinks 2010 will be another strong year for stocks, but for different reasons than in 2009. “In contrast to 2009, when cheap valuations drove our bullish conviction,” Oberweis writes for MoneyShow.com, “our 2010 prediction is based on OOB — ‘Out of Bonds.’” According to Oberweis, “way too much money has flowed into bonds in this risk-averse world.” The historically bad decade for stocks and strong decade for bonds are… Read More
In his latest Wall Street Journal column, Jason Zweig offers an interesting take on the efficient market hypothesis, channeling the late, great Benjamin Graham for guidance. Zweig says that while the stock market may give the most accurate estimate of a stock’s value based on the available information, that doesn’t mean its estimates are right. The reason, he says, involves the two main factors that Graham said go into a security’s price: ‘investment value’ (which… Read More
Growth stock guru Louis Navellier says he sees a very healthy earnings environment for the first five months of 2010. He also tells Bloomberg that he expects stocks will do well in that period, after which the market will become much more selective. [youtube=http://www.youtube.com/watch?v=tFCgetifsuA]
Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Martin Zweig-inspired strategy, which has produced annualized returns of 8% since its inception more than six years ago, a period in which the S&P 500 has gained just 2.1% per year. Below is an excerpt from today’s newsletter along with several top-scoring stock ideas based on the Zweig investment strategy.… Read More
Charles Schwab Chief Investment Strategist Liz Ann Sonders, one of the few to accurately call the start of the recent recession, says she’s expecting some nice surprises from the economy in 2010 and remains fairly bullish. But she also thinks the market is overdue for a correction — one she would welcome. “There are always impediments to growth coming out of every recession, but more often than not the capacity of markets, economies and individuals… Read More
Templeton Asset Management’s Mark Mobius says that a 15% to 20% correction isn’t unlikely for the stock market, but that investors shouldn’t mistake one for the start of another big downturn. “In a secular bull market, where we are now, you will see corrections can be as much as 15-20 percent, but we shouldn’t be concerned that this represents a bear market,” Mobius tells CNBC. “A 20 percent correction is not unusual, we’ve seen it… Read More
The Motley Fool’s Morgan Housel recently highlighted some words of wisdom from Charles Munger, Warren Buffett’s right-hand man at Berkshire Hathaway. Taken from Munger’s book Poor Charlie’s Almanack, the 10-point list represents Munger’s “investing principles checklist”. Much like Buffett’s advice, Munger’s is timeless in nature. Here are the ten points; for more detail, click here: 1. Measure risk All investment evaluations should begin by measuring risk, especially reputational. 2. Be independent Only in fairy tales… Read More
The Fairholme Fund’s Bruce Berkowitz, who was recently named Morningstar’s domestic fund manager of the year, says that we are still in the early stages of the economic recovery. “I’m optimistic about the economy — we are in the spring of a recovery,” Berkowitz tells CNBC. “There may still be frost here and there, but the markets are thawing out and we have some wonderful companies in the portfolio that remain quite cheap in relationship… Read More
Yale Professor and money manager Roger Ibbotson, whose research into historical stock returns is among the most extensive available, says that investors can get a premium by investing in stocks or other assets that have lower levels of liquidity. Ibbotson tells Bloomberg that this “liquidity premium” is a “forgotten area” of stock analysis. [youtube=http://www.youtube.com/watch?v=in_x0DDqetg]
Steven Leuthold, the longtime bear who wisely shorted stocks in 2008 and then presciently turned bullish in 2009, says 2010 will feature some strong gains for the market — and then some significant losses. According to Registered Rep. magazine, Leuthold writes in his latest “Green Book” report that the S&P 500 should climb another 20% or so in 2010. Then, however, Leuthold says it “will give up those gains in the second half of the… Read More