Greenblatt: High-Quality Appears to Offer Most Value

Hedge fund guru Joel Greenblatt says that he thinks the best values in the stock market are probably now in the “high-quality” area, as opposed to the junk stocks that have led the recent rally. And, he says he’s not too concerned with potential inflation — or deflation, for that matter. Greenblatt, who uses a purely quantitative formula to pick stocks, tells Yahoo! TechTicker that he doesn’t like to predict where the broader market will… Read More

Arnott: Think Deep — Value, That Is

Rob Arnott of Research Affiliates says that the recent rally has taken away from the attractiveness of many areas of the stock market, but he remains very high on beaten-down value stocks, which he says are still priced near Armageddon levels. “What we’re seeing is value priced as if Armageddon isn’t right next door; but it might be three or four doors away,” Arnott tells Canada’s Globe & Mail. “And the growth side is priced… Read More

Grantham Expects “Painful” Pullback in 2010

In his third-quarter letter to clients, GMO’s Jeremy Grantham offers a scathing critique of a myriad of groups whose actions (or inactions) led to the current economic climate — from regulators to homebuilders to CEOs to politicans — and says the stock market is now 25% overvalued and due for a tumble. He also reiterates his belief that U.S. “quality” stocks are the place to be, and that an emerging market bubble is looming. “Fair… Read More

Buffett, Whitman, Grantham & Others Weigh In

Kiplinger’s recently asked six top strategists to give their take on investing and where the markets are headed from here. A sampling of the responses: Warren Buffett: While he says he has no idea where stocks will head in the short term, Buffett says that “over a ten-year period you will do considerably better owning a group of equities than you will owning Treasuries. In fighting the economic war, we’ve taken action that sows the… Read More

Shilling: Don’t Believe the Rally

Economist, money manager, and Forbes columnist Gary Shilling says talk of a “V” shaped economic recovery is overdone, and that we’re in a bear market rally — not a new bull market. Shilling tells Steve Forbes that he thinks stocks are in a bit of a bubble following the recent runup. “There was a realization earlier this year that the financial structure was not going to disappear into the earth, and that was certainly cause… Read More

Sonders, Hulbert: Inflation Fears May Be Overblown

One of the biggest fears in the investment world right now involves inflation. And, given the huge sums of money the government has pumped into the economy in the past year or so, the fears seem on the surface to be warranted. But two top strategists, Charles Schwab Chief Investment Officer Liz Ann Sonders and Mark Hulbert of MarketWatch and Hulbert Financial Digest, say a number of factors are conspiring against major inflation — for… Read More

Don’t Fear Healthcare Stocks, Forester Says

While many investors are afraid of healthcare stocks right now because of the possibility of major industry reforms, the lone diversified stock fund manager to make money in 2008 is bullish on the sector. Tom Forester of the Forester Value fund says he thinks much of the potential bad news is already priced into healthcare stocks, Fortune reports. And with the sector trading at about seven times earnings vs. around 20 for the broader market,… Read More

Leuthold: Good Things Coming for Stocks in Nov., Dec.

Steven Leuthold, a longtime bear who turned bullish earlier this year, remains a bull as we head into the home stretch of 2009. He tells Bloomberg news that he thinks we’ll see something of a capitulation in November and December by those who have thus far been cautious. [youtube=http://www.youtube.com/watch?v=RvREbaq3jgI]

Be Nimble in this Market, Mauldin Says

John Mauldin, one of the few strategists who saw last year’s market meltdown coming, now says that he thinks the current environment calls for “nimble” investing. Mauldin tells Yahoo! TechTicker that he thinks investors can be traders or “ride the wave” in the current market, but adds, “I don’t think you want to buy something and plan to hold it for five years.” Mauldin is concerned about a double-dip recession, which he says would send… Read More