Siegel: Earnings “Nowhere Near as Dismal” as S&P Data Suggests

In his most recent posting on Yahoo! Finance, Jeremy Siegel reiterates his belief that Standard & Poor’s flawed earnings calculations for the S&P 500 are making the corporate earnings picture look much worse than it really is — and he says he thinks the market did indeed bottom on March 9. According to Siegel, author of Stocks for the Long Run and professor of finance at the University of Pennsylvania’s Wharton School, S&P’s calculations are… Read More

Portfolio Size: How Big Is Big Enough?

How many stocks should you own? Rob Wherry of SmartMoney.com takes an interesting look at that question today on The Wall Street Journal’s web site. Wherry examines “focused funds” (those that own fewer than 50 stocks), narrowing the list down to 18 that meet performance, fee, sales load, and manager experience requirements. Among the funds with the best five-year track records: CGM Focus (3.9% average annual return) and Forester Value (3.5% annual return), run by… Read More

A “Superinvestor” and Other Depression Survivors Weigh In

Very interesting piece from SmartMoney’s Reshma Kapadia in the magazine’s new May issue. (It doesn’t appear to be available online yet; when it is, we’ll add the link). With all the recent talk about whether the U.S. is headed into — or is already in — a depression, Kapadia interviewed three money managers who actually lived through the Great Depression, getting their insights about how it felt living through that terrible period, and what they… Read More

How Your Brain Can Drag You Down — and How You Can Overcome It

Nature vs. nurture — it’s an eternal debate, and, as Jason Zweig shows in his most recent Wall Street Journal column, scientific research shows it’s a question that can have a great deal of impact on your investment style and decisions. Zweig writes that he recently volunteered as a guinea pig in Dr. Ahmad Hariri’s lab at the University of Pittsburgh, undergoing several different DNA analyses and brain scans. Hariri’s tests measure a variety of… Read More

Mortimer on “The Most Dangerous Words in Investing”

Charles Schwab Investment Management’s Chief Investment Officer Jeff Mortimer offered some interesting thoughts on the current market and keys to a good investment strategy in a Q&A with Washington Post readers today. One key thought from Mortimer, when asked whether his advice takes into account potential unprecedented events or situations: “The most dangerous words in investing are ‘it’s different this time.’ The world has had many issues before, and will again. It is important to… Read More

Top Fund Manager Eyes Small-Caps

John E. Deysher, whose Pinnacle Value Fund has outperformed 99% of its peers year-to-date and over the past year, three years, and five years, tells Barron’s that he’s been putting more cash to work, and says to look for a big bounce from small-cap stocks as the economy recovers. “Current stock prices reflect pretty dire economic circumstances,” Deysher said. “But, in general, businesses have been very responsible. They are bringing down inventories. They are paying… Read More

The Two-Pronged O’Shaughnessy Attack

In every other issue of my investment newsletter, The Validea Hot List, I look in detail at one of the computerized guru models I run on Validea.com. In this week’s issue, I outlined the growth/value strategy that James O’Shaughnessy found produced tremendous results over more than four decades. Below you will find an excerpt from the newsletter along with a handful of top-scoring stock ideas based on the O’Shaughnessy investment strategy. Taken from the April… Read More

Glassman: Choose History Over Hunches

In his latest Kiplinger’s column, former Under Secretary of State James K. Glassman says that — in spite of all of the troubling developments that have hit the economy and stock market over the past year or two — he still believes that the historical trend of the stock market producing strong long-term gains will continue. “Perhaps some profound change has occurred in the economic and social fundamentals that underlie financial investments, making history an… Read More

Oberweis on the Bullish Turn, Small Caps and … Han Solo?

Newsletter guru and money manager Jim Oberweis writes for Forbes.com that, although the economy will continue to struggle, he’s bullish — and that profitable growth stocks will be “ideally positioned” as first-quarter earnings roll in. “All told, we are still bullish on stocks, mostly because valuations remain significantly below historical averages, and we expect things to slowly get better,” Oberweis writes. “Even after the recent run, P/Es are very digestible.”

Dreman: Yes, It’s a Depression — So Buy

One of the investing world’s pre-eminent contrarians, David Dreman, writes in Forbes that the U.S. is indeed in a depression — not a recession — but says it’s also a good time to put money to work in the stock market. “Let’s not sugarcoat what’s going on,” Dreman writes. “We are in a depression, not a recession. It continues to devastate industry after industry like a wild forest fire leaping across the clearings.” Dreman says… Read More