Dorfman: Rally Still Has Legs

Columnist and money manager John Dorfman, who called the recent upturn in the market, says he believes the rally is sustainable until at least early 2010, in large part because the economy is on the mend. “To be sure, not all signs point to the rally continuing,” Dorfman writes in the Asbury Park Press. “On balance though, I think the evidence favors continued gains, pockmarked with occasional rude interruptions.” Dorfman points to both the Conference… Read More

’08 Winners See Opportunities Now, Economic Troubles Ahead

Several strategists who produced big returns during the downturn, including George Soros and John Paulson, are seeing tough times ahead for the economy — but opportunities in the market right now. According to The Wall Street Journal, Soros is bullish on stocks in Brazil, China, and India. Corporate profits will likely not be as high as they were during the “super bubble”, but China will partially replace the struggling U.S. consumer, he says. “China is… Read More

Tech Rebound for Real, Says Oberweis

Newsletter guru and money manager Jim Oberweis says the strong performance of technology stocks this year isn’t a flash in the pan, but instead the start of a longer-term trend. “Part of the reason for the downfall of the tech sector was that from 1999 to 2000, stocks were valued so high that investors had priced in perfection, which is something that rarely occurs,” Oberweis tells AOL’s Daily Finance. “Over that period, we saw tech… Read More

Tilson & Heins Say Financial Sector Troubles Will Linger …

In their “Discovering Value” column in Kiplinger’s, Whitney Tilson and John Heins say they think the strong recent market rebound is overdone, because we’re not out of the financial sector woods yet. “We think the financial system has many years of significantly higher than normal losses to work through,” the duo writes. “As the greatest bubble in history deflates, it will continue to affect the economy, corporate earnings and the stock market.”

… But Bove Says Banks Better than You Think

Longtime bank analyst Richard Bove tells Forbes Intelligent Investing that the banking system is actually better than analysts or the media are indicating. “What is not being seen is the fact that banking cash flows are staggeringly positive, that banking equity is at record levels, that reserves are ultimately going to come down, driving banking profits substantially higher,” he says. “Now, it may take two, three, four quarters before we start to see that. But… Read More

Greenblatt on Markets, Magic Formula & More

In a wide-ranging interview, author and hedge fund guru Joel Greenblatt has responded to a myriad of reader questions on GuruFocus.com, offering his thoughts on portfolio strategy, macroeconomic analysis, and whether the potential popularity of his new website, FormulaTrading.com, will impact the success of his “Magic Formula”. Greenblatt’s formula, detailed in his Little Book that Beats the Market, includes only two variables: return on capital and earnings yield. Despite its simplicity, it has a lengthy… Read More

Fisher’s Advice — The Old, and The New

This month marks the 25th anniversary of Kenneth Fisher’s Forbes magazine column, and in his latest piece Fisher offers his thoughts on what has changed — and what hasn’t — in terms of his portfolio management advice. Among the principles Fisher says he still espouses: Avoid overpaying; Don’t just rely on the price/earnings ratio as a valuation metric; also look at the price/sales and price/book ratios; Compare companies both to the broader market and to… Read More

Buffett’s Best Advice

Fortune is running its annual “Best Advice I Ever Got” issue, with respondents ranging from golfer Tiger Woods to Google CEO Eric Schmidt to former Secretary of State and Ret. Gen. Colin Powell. It’s an interesting feature that often offers timeless, valuable wisdom. In the video below, Warren Buffett shares the best piece of advice he’s ever received, something he picked up 60 years ago from the late, great Benjamin Graham.

Faber: Gold & Equities the Places to Be

Marc Faber, the money manager and Gloom Boom & Doom Report editor who has an excellent track record of market calls, sees severe inflation coming, and says investors should be putting their money in gold and equities — not bonds and cash. Faber says he thinks we most likely saw the market bottom on March 9, in part because any major drops in the market will be met with more government stimulus. But he also… Read More

The Graham Approach: Still Making Hay after 60 Years

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This week’s issue looks at the Benjamin Graham-inspired Value Investor strategy, which is up more than 26% this year and has averaged annual returns of more than 16% since its July 2003 inception (vs. an average annual loss of 1.4% for the S&P 500). Below is an excerpt from the newsletter along with several top-scoring stock… Read More