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=]

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

Bolton Likes Value Stocks, Techs, Financials

Earlier this month we highlighted U.K. mutual fund guru Anthony Bolton’s call about a multi-year bull market being in the works, with developing nations leading the way. Today, speaking at a conference in Korea, Bolton expanded a bit on those comments, saying that he doesn’t think we’ll see a double-dip global recession. “We are in a very strong recovery phase,” Bolton said, according to the Korea Times. “Next year, it will lose steam, but it… Read More

Fisher’s Price/Sales Approach Still a Winner

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Kenneth Fisher-inspired Price/Sales Investor strategy, which has produced annualized returns of more than 13% since its inception more than six years ago, a period in which the S&P 500 has gained just 1.5% per year. Below is an excerpt from the newsletter along with several top-scoring stock ideas based on… Read More

Buffett Says Worst Is Over for Economy

Warren Buffett says that, while the near-term may not be easy sailing, the low point of the economic downturn has passed, The Wall Street Journal reports. Buffett, who made his comments at a gathering of payments industry executives, said that “enormous” progress has been made in the past year. The Journal also reports that Buffett was more cautious regarding unemployment rates, however. He said companies must be convinced that demand exists before hiring, which may… Read More

Tilson Sees Surge in Defaults, Market Downturn

Whitney Tilson, the columnist and money manager who called the housing crash, is now betting on another downturn in the stock market. Tilson, of T2 Partners, tells CNBC that “we’ve doubled our short book from 30% to 60% and we’ve trimmed our long book from 120%to about 90%.” His favorite short area: homebuilders. Tilson, who has been warning that investors should cut back and be more defensive for a couple months now, says he thinks… Read More