Buckingham Says There’s Value in Those Left Behind

While the market is up well over 50% since its March low, money manager John Buckingham says you can still find values — particularly in areas left behind in the recent rally. “This a rally that has been led by the risky stuff,” Buckingham tells BusinessWeek. “Investors should be gravitating toward the names that really haven’t had a great performance in the [market] recovery.” Buckingham says to start with large, dividend-paying companies with safe reputations.… Read More

Top Manager Says Market Has More Room to Run

Dan Chung, CEO and chief investment officer of Fred Alger Management (whose Alger Funds as a whole have significantly outperformed the broader market for the past three and five years) says upside earning surprises, poor yields on cash, and the international nature of many companies will spur the stock market higher. “We’ll see more fundamental upside [earnings] surprises in the third and fourth quarters, and the wall of cash on the sidelines” that’s fetching “terrible”… Read More

The Stealth Bull Market

MarketWatch’s Mark Hulbert says that, while the market has continued its upward trend in the past few months, sentiment remains quite low among market-timers — and that’s good news for stocks. As of Thursday, the shortest-term market-timers tracked by Hulbert’s Hulbert Financial Digest, on average, recommended that investors be 19.4% in stocks. “Though that may strike you as surprising, it is precisely what contrarian theory would suggest: The bull market is climbing a wall of… Read More

Gabelli Says “Plain Ol’ Stock Picking” Still Works

In an interview with CNBC, GAMCO’s Mario Gabelli says the way to make money in a fairly flat market is by going back to “plain ol’ stock picking” — and says that the “new normal” will look a lot like the old normal. “It’s not the new normal — it’s the way it used to be” until the financial sector blew up, Gabelli says. He adds that he expects “the strong will get stronger,” citing… Read More

“High-Quality” Picks from the Gurus

In the past two days, two of the most successful gurus I follow — GMO’s Jeremy Grantham and Gotham Capital’s Joel Greenblatt — have said that they are seeing a lot of value in “high-quality” stocks, as opposed to the junk-type stocks that have led the recent market surge. In his third-quarter letter, Grantham says that U.S. “quality stocks (high, stable return and low debt)”, are now trading at “genuine outlier levels” compared to the… Read More

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