Negativity Creating Opportunities, Gabelli Says

Top value investor Mario Gabelli says those who contend buy-and-hold investing is dead are echoing a familiar refrain that has popped up at other points in history, and has yet to prove true. Gabelli tells CNBC that the negative sentiment in the market, and the fact that many investors are turning to quick-trading strategies, are creating big opportunities for those who are sticking with buy-and-hold stock approaches.

Yacktman Likes Pepsi — and Doesn’t Like Market Timing

Donald Yacktman, who has an exceptional long-term mutual fund management track record, is continuing to find a myriad of values in the stock market right now, particularly among big blue chips. “I haven’t seen a period at least since the early 1990s when so many above-average companies have traded at below-average prices,” Yacktman tells Kiplinger’s magazine, adding that he “drool[s]” at Pepsi, one of his biggest holdings. He also likes other blue chips, including Coca-Cola… Read More

Hulbert on Where to Invest if Deflation Hits

Would deflation be bad for stocks? Many investors appear to think so, judging from the market’s recent hiccups after signs that deflation could be rearing its head. But MarketWatch’s Mark Hulbert says that might not be the case — particularly for certain types of stocks. In his most recent column, Hulbert says Ned Davis Research’s Senior Sector Strategist, Lance Stonecypher, offers some interesting data on how deflation has historically affected different types of stocks. “Perhaps… Read More

ECRI Director: Recovery Real, but Unemployment a “Structural” Problem

Lakshman Achuthan, managing director of the Economic Cycle Research Institute, says he thinks we’re in a “real recovery”, but that the high long-term unemployment rate is part of a structural problem that won’t be cured by the current recovery. Achuthan, whose group has a strong track record of forecasting business cycles, also tells Bloomberg that he’s not sure that the most recent unemployment report is a “game-changer”. [youtube=]

Reese on Stocks the Big Guys Like

With individual investors continuing to shun stocks, Validea CEO John Reese takes a look at some firms that institutional investors — who appear to have driven the 2009 market rebound — are high on in his latest Morningstar column. “Institutions have continued to buy stocks this summer while the market has struggled,” Reese writes. “According to the research group Lipper, institutional investors added more than $13 billion to world equity funds in June and July… Read More

Tilson: High-Quality Blue Chips as Cheap as Ever

Whitney Tilson says he’s seeing some of the best opportunities he’s ever seen in big, high-quality blue chip equities, but that a bubble is forming in blue chip bonds. Investors, he says, appear willing to accept any yield on safe bonds, but have no interest in buying shares of the safest companies, even though those companies are doing quite well. Tilson also discusses why the next ten years should be better than the last ten… Read More

Top Fund Manager Sees Hopeful Signs

Thyra Zerhusen, whose Aston/Optimum Mid-Cap Equity fund has beaten about 95% of its peers over the past decade, is seeing signs of hope in the economy, and has been buying on the market’s dips. According to SmartMoney, Zerhusen bought shares of firms like media giant Gannett and speech-technology firm Nuance Communications when the market declined this year. She says improved earnings in the spring and reports of components shortages are encouraging signs. “I wouldn’t have… Read More

Biggs: Now Isn’t Time to Be Underinvested

Barton Biggs says the odds of a double-dip recession are “pretty remote”, and says he doesn’t think now is a time to be underinvested. The hedge fund guru tells Bloomberg that he puts the odds of a double-dip somewhere around 1-in-5. He’s nervous about some economic factors, but likes the bearish sentiment in the market, and says large-cap high-quality stocks are very cheap. He also talks about some areas of the market he’s high on,… Read More