Fisher: Fears are Greater, but Risk is Lower

In his latest Forbes column, Kenneth Fisher offers advice for those who feel like the stock market is too risky a proposition right now. “This is not an irrational fear; stocks that are off 50% from their highs (and a lot are, at this point) can keep falling,” Fisher writes. “But you can temper your fear by realizing that low prices make stocks less risky, not more risky. Unless there has been a corresponding collapse… Read More

Tobin’s Q Ratio: “Modestly” Bullish Sign

In the latest issue of Equities and Tobin’s Q, John Mihaljevic (CFA and managing editor of The Manual of Ideas blog) explains that the “Q” ratio made famous by Nobel Laureate James Tobin indicates that stocks are undervalued right now — but says that there could still be further declines before a turnaround. (A special thanks to the Manual of Ideas for highlighting this data.) The Q Ratio divides the total market value of stocks… Read More

Gross, Lynch, Malkiel: Varied Perspectives on Current Market

In interviews with the Washington Post, three top market minds — former Fidelity star manager Peter Lynch, PIMCO’s bond guru Bill Gross, and Princeton professor and author Burton Malkiel — offer some pretty wide-ranging views on the stock market and where we’re headed. Lynch and Malkiel express a fairly bullish take for long-term investors. Lynch says that the recent market plunge has affected great and good companies as well as mediocre firms. “It’s brought them… Read More

Good Quant, Bad Quant

MarketWatch’s Paul Farrell recently offered up a scathing critique of “quants”, complete with this eye-catching subhead: “By Predicting Your Behavior, Quants Control Your Mind, Money, the Markets”. Since I run what could be considered “quantitative strategies” both on my web site, Validea.com, and in my money management business, I was interested to see what Farrell had to say about quants and their impact on the market. To be sure, quants play a big role on… Read More

Buffett, Berkshire Focusing on U.S.

Warren Buffett tells Bloomberg that the odds are his Berkshire Hathaway — still on a buying binge — is more likely to make its next acquisitions in the U.S. rather than abroad. “The statement is a reversal for Buffett, who spent four days at press conferences and meetings in Switzerland, Germany, Spain and Italy last May to drum up potential buyouts when U.S. opportunities were scarce,” notes Bloomberg. “With rival bidders cut off from funds… Read More

Kass: It’s Dinner Time

TheStreet.com’s Doug Kass — a pretty hardened bear whose stance began to soften last month — is now standing firm in his call that we’ve reached a bottom. “We live in a Land of Johnny-Come-Lately Chicken Littles, most of whom failed to identify the credit and economic risks 1½ years ago but who today hold with alacrity and great confidence a belief in a continued dire outcome for equities, as they all too often see… Read More

Hussman: Good Values, but No Bottom

John Hussman, whose Strategic Growth and Strategic Total Return funds were some of 2008’s best, is warning that major volatility may soon return to the stock market. “I suspect that the markets are about to get volatile, possibly to an extent beyond what we observed in October and November,” Hussman wrote in his latest market commentary on Hussman Funds’ website. “When the markets break support with broad uniformity and few divergences, it suggests that risk… Read More

Tilson & Heins: How You Can Be a Stock “Lion” Like Templeton

Barry Ritholtz isn’t the only successful manager saying investors should be making “watch lists”. In their latest “Discovering Value” column for Kiplinger’s, Whitney Tilson and John Heins say that maintaining a watch list of stocks you’re interested in is a key to good investing. “The stock market rarely offers truly exceptional buying opportunities, so it pays to be prepared when one comes along,” Tilson and Heins write. “We suggest that you maintain a watch list… Read More

Ritholtz: Time for a Wish List

Barry Ritholtz of The Big Picture blog and FusionIQ is the latest well-known bear to turn bullish, notes Yahoo! TechTicker. In an interview with Aaron Task of TechTicker, Ritholtz says that the market has reached levels at which he’s seeing a lot more upside than downside. “If you’re a long-term investor, at the very least you should be making a wish list” of stocks you’ve been wanting to own but which may have been too… Read More

Lynch: Stocks Still Best Choice for Long Term

In a recent interview with The New York Times, former Fidelity star manager Peter Lynch says that the recent market plunge and financial crisis hasn’t shaken his belief that stocks are the best long-term choice for investors. “I can’t tell you anything about where the market will be in the next six months or 12 months or two years,” Lynch said. “But at some point in the future, I think you’ll look back and see… Read More