Stiglitz Sees “Malaise” Ahead

Joseph Stiglitz, a two-time Nobel Prize winner and Columbia University economist, sees more rough sledding for the economy, and says the government should provide more stimulus funding to help with state government shortfalls and consumption slowdowns. Stiglitz tells Yahoo! TechTicker that, while the sense of economic free-fall has ended, the likelihood of real gains in employment anytime soon are “very remote”. There is serious risk of an “extended malaise” as the economy recovers, he says.

Krugman on the Stimulus, Inflation, Stocks, and Healthcare

In a wide-ranging interview with Advisor Perspectives, Nobel Laureate, Princeton Professor, and New York Times columnist Paul Krugman says not to quit on the government’s current stimulus package, that he’s not too afraid of inflation, and that stocks don’t appear to be significantly over- or undervalued right now. Regarding the stimulus, Krugman says, “It’s important to remember that the stimulus package has barely kicked in, a point that is lost in the 24/7 reporting on… Read More

Dorfman Adjusts for Post-Recessionary Climate

Thunderstorm Capital Chairman and Bloomberg columnist John Dorfman says the market and economy should continue to trend upward at least into next year. Dorfman says he’s emphasizing industrial cyclicals, materials stocks, and energy stocks in his portfolios, and is cutting back on utilities and healthcare stocks, two areas he had focused on during the downturn. He also offers some interesting thoughts on where tech stocks might be headed, and gives a couple stock picks. [youtube=]

Six Reasons Top Wells Strategist Likes This Market

In his latest newsletter, James Paulsen, chief investment strategist for Wells Capital Management, says he believes “the economy and the financial markets have finally turned a corner and are probably ‘very early’ in a new recovery cycle,” meaning that investors shouldn’t cash out of stocks after the big recent rally. “We caution investors against letting the horrors experienced during the last couple years overly color contemporary investment strategies lest it produces a portfolio well-positioned for… Read More

Barclays Strategist: Recovery Will Be Strong

While there is still quite of bit of pessimism and talk of gloom and doom swirling around the market and the economy, Barclays head of asset allocation Tim Bond is sounding positively sunny. “History provides abundant evidence that the deeper the recession, the stronger the bounce. Even the recovery from the Great Depression conformed to this rule; real US GDP grew 10.8 per cent in 1934 and 8.9 per cent in 1935,” Bond writes in… Read More

Swensen on Why Individual Investors Will Always Be at a Disadvantage

WealthTrack has released some previously unaired parts of Consuelo Mack’s May interview with Yale Chief Investment Officer David Swensen. In the clip below, Swensen discusses a variety of topics, including why he thinks some corporate bonds are a good bet for professional investors but not a good bet for individuals; why individuals will always have trouble beating the market; and why his strategy in picking managers to invest Yale’s funds with is “all about the… Read More

Where Do We Go from Here? Sonders, Yardeni & Others Weigh In

With the market continuing to surge, recently surveyed a number of top strategists to see just how much room they think stocks have to run, and found a good deal of optimism that was tempered by caution. Among the strategists: Charles Schwab Chief Investment Strategist Liz Ann Sonders; Yardeni Research President Ed Yardeni; and Bespoke Investment Group Founder Paul Hickey. Here’s a sampling of what they had to say: Sonders: “The train has been… Read More

Gross on GDP, the “New Normal”, and Why Watching Fees Is More Important than Ever

In his August Investment Outlook on PIMCO’s web site, bond guru Bill Gross talks about two key — and interrelated — issues: whether the government will be able to “reflate” the economy to match past longer-term GDP growth figures, and why avoiding the big fees most investment advisors and funds charge is so crucial today Gross says nominal GDP growth has to grow close to 5% — its long-term average — for the economy’s long-term… Read More

Top Strategists Talk “Buy-and-Hold”

The Financial Times recently interviewed several top strategists about the viability of “buy-and-hold” investing, and found that some are espousing more of a “buy-cheap-and-hold” approach. “In a challenge to the received wisdom of holding stock market investments for 20 years or more, to smooth out short-term volatility, some suggest that measures of cheapness can be used to make buying decisions and enhance performance,” writes the Times‘ David Stevenson. Here’s a sampling of what some of… Read More

Why Jeremy Grantham Is Bored with this Market

Just a few months after he said that equities were undervalued for the first time in two decades, Jeremy Grantham now says the broader market is again overvalued — though he sees substantial opportunities in certain areas of the market. In the GMO chief’s second-quarter letter, Grantham says that a year ago, stocks were overpriced, and a quarter ago, they were underpriced. “Now they have all — or almost all — converged for a few… Read More