Bolton on Why China Lured Him Back

Top U.K. manager Anthony Bolton of Fidelity is managing a new China-focused fund, and he recently told London’s Telegraph why the opportunity lured him out of retirement. “This may be the biggest economic and investment story of our generation,” Bolton says. “I believe that China’s economy could expand at nearly 8% a year between 2011 and 2020, and by more than 5% a year over the subsequent 10 years. The sheer scale of China, with… Read More

Shilling Sees Rough Times Ahead — But Opportunities, Too

Economist and INSIGHT newsletter editor A. Gary Shilling is expecting slow growth and deflation in the coming years, along with a secular bear market. But he says there will still be ways for investors to make money. In a piece published on MoneyShow.com, Shilling lists a number of areas he thinks will produce winners over the next decade. Among them: Utility stocks and other solid dividend players High-Quality bonds, especially Treasuries Consumer staples and foods… Read More

Miller on Investors’ “Perverse” Affinity for Bonds

Legg Mason’s Bill Miller says that the path of least resistance for the stock market is higher, but that many investors are continuing to maintain a “perverse affinity” for bonds. “It’s clear that economically things are getting better, not worse,” Miller writes for the Financial Times. “In addition to gross domestic product numbers, credit spreads have returned to some semblance of ‘normal’, and the bond market has seen record refinancings. Yet stocks still sell below… Read More

Natural Gas: Ready to Take Off?

Value investing guru Ron Muhlenkamp says that because of advances in drilling techniques, we’re about to see a “dramatic increase” in the use of natural gas in transportation — which bodes well for firms that deal in the clean-burning fuel. “We’re about to see a dramatic increase in the use of natural gas in transportation,” Muhlenkamp writes for Forbes. “Recent improvements in drilling technology and techniques have significantly increased the amount of gas available at… Read More

Yacktman Looks to Stocks, Not Gold, for Inflation Protection

Donald Yacktman, whose mutual funds have some of the strongest long-term track records around, says companies with good pricing power can be better inflation hedges than gold. Yacktman tells Bloomberg that he thinks inflation is coming, and businesses like Coca-Cola, Procter & Gamble, and Viacom have the ability to raise prices and are thus very protected from inflation. “I’d rather have Coke than gold,” he says. [youtube=http://www.youtube.com/watch?v=SehSj_ITZIw]

Wien’s Surprises for 2010

Byron Wien of Blackstone discusses the market, economy, and some of his “Top 10 Surprises” for 2010 on CNBC. Among the topics Wien covers in the interview: unemployment, which he says will be down into the 8% range by the end of the year; inflation, which he doesn’t expect will have an impact this year; gold and oil, which he thinks will rise; and the dollar, which he thinks could strengthen.

Sonders: Sentiment Tumble Could Be Good Thing

Liz Ann Sonders, Charles Schwab’s chief investment strategist, says the recent market pullback was needed to push back excessive optimism that had developed, and moving forward her firm is high on healthcare stocks. According to BusinessWeek, Sonders says that enormous sensitivity among investors doesn’t have to be a negative. “I don’t view that as necessarily bad,” she says. “If we were in an environment where you couldn’t do anything to pull back the optimism, that… Read More

Is the Rally Done? Different Views from Two Market Minds

In interviews with BusinessWeek, Howard Ward (of Mario Gabelli’s GAMCO) and Whitney Tilson offer very different takes on where the market is headed following the recent pullback. According to Ward, the pullback isn’t a sign that the bull run is over. “There’s always going to be a reflexive action, a knee-jerk reaction, but it’s not a signal that the bull market is over,” he said. “I see rising earnings this year and next year pulling… Read More

Hussman “Cautiously Pessimistic”

Hussman Funds’ John Hussman says he’s fully hedging his Strategic Growth Fund, seeing the recent market weakness as a “natural (though unpredictable in timing) clearing of the previously overextended market condition.” In his latest market commentary, Hussman says it’s not impossible that this clearing phase is over, “but it would be uncharacteristic, particularly since we’ve seen a lot of technical breakdowns, and our broad measures of market internals are negative.” Hussman has a couple main… Read More