The Best Investment Guru You’ve Never Heard Of

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 Joseph Piotroski-inspired strategy, which has beaten the market by more than 3 percentage points per year since its inception almost six years ago. Below is an excerpt from today’s newsletter, along with several top-scoring stock ideas based on the Piotroski investment strategy. Taken from the February 5, 2010 issue of… Read More

Oberweis: Headwinds Making China Stocks More Attractive

Newlsetter guru Jim Oberweis, whose China Opportunities fund has returned 116% over the last year (more than 95% of its peers), says China stocks face headwinds over trade disputes with the U.S. But, he tells Bloomberg, he doesn’t think we’ll see a trade war between the two international powers. “If you look at it from a prisoners dilemma point of view, meaning what is rational for all the players in the game, the trade war,… Read More

El-Erian: No Strong Bouce-Back this Time

While the economy has shown signs of life in the past several months, PIMCO’s Mohamed El-Erian still expects a “new normal” of subpar growth in the U.S. El-Erian tells Bloomberg that, while strong bounce-backs are typical in recoveries from crises that are cyclical in nature, they are not typical in recoveries from crises that are structural — and the latter applies to the current recovery. [youtube=http://www.youtube.com/watch?v=3-OenWiHrZM]

“Random Walk” Author Malkiel: Keep It Simple

Burton Malkiel, the Princeton economist known for his book A Random Walk Down Wall Street and espousal of the efficient market hypothesis, hasn’t changed his beliefs after the recent financial crisis and market meltdown. In an interview with CBS MoneyWatch, Malkiel talks about why the past decade has actually reinforced his belief that a portfolio of diversified stock index funds, bonds, and cash, rebalanced periodically, is the best option for investors.

Guru Strategy Rating Changes: BP, Visa on the Move

Each week, we take a look at which stocks John Reese’s Validea.com Guru Strategy computer models have newfound interest in, and which they have soured on. Here’s a look at some of the stocks John’s strategies have upgraded or downgraded today, including big names like Visa and BP.

Tilson & Heins: “Buy-and-Forget” a Losing Proposition

In their latest Kiplinger’s column, Whitney Tilson and John Heins examine a 10-year-old Fortune magazine article to stress some of their core beliefs about investing — including the idea that buy-and-hold investing (or, perhaps more accurately, “buy-and-forget” investing) can be a dangerous practice. The Fortune piece, entitled “10 Stocks to Last the Decade”, highlighted 10 stocks that investors might add to their portfolios and be able to hold for the next decade, because these firms… Read More

Fisher: Think Globally — and Be Careful on Gold

Money manager and Forbes columnist Kenneth Fisher says we are in the early stages of a bull market led by foreign and emerging markets — and that investors should be very careful when it comes to buying up gold. In an interview with Wallace Forbes on Forbes.com, Fisher says that many make the mistake of being too U.S.-centric when looking at growth. “We’re at a point where it’s the emerging markets world with an emergent,… Read More

Nygren: Don’t Avoid Stocks

In a new interview with Minyanville.com, Oakmark fund manager Bill Nygren — whose fund is up 50% in the past year and ahead of the S&P 500 over the past 3, 5, and 10 years — says investors need to get back to basics. And for most, that means returning to stocks. “The thoughtful investor today, rather than thinking about how they missed the rally or remaining afraid of another lost decade, needs to get… Read More

Siegel on Obama Proposals, Oil, and the Dollar

Wharton Professor and author Jeremy Siegel says the financial sector restrictions being proposed by President Obama aren’t addressing the problems that caused the financial crisis and market meltdown of 2008. In an interview with Bloomberg, Siegel also says that part of the weakness in the market recently is related to the strengthening dollar, and he says that declines in oil prices to sub-$70 levels could provide the basis for another leg upward in the rally.… Read More

Stocks Still Offer Opportunities, But Correction Likely, Sonders Says

In a wide ranging interview with The Motley Fool web site, Charles Schwab Chief Investment Strategist Liz Ann Sonders says she thinks a correction will hit the stock market in the near term. She’s optimistic on the economy, however, and says current equity valuations aren’t bad. “I’m actually probably a little more optimistic than the consensus about the economy, but I think the market has more things with which it’s going to have to contend… Read More