Harvard’s Porter: Stimulus Should Be More than Short-Term Boost

Famed strategy expert Michael Porter of Harvard Business School shares his view on America’s overall economic strategy on CNBC. Since the election, he says, we are off to a good start and President-elect Obama and America have gained “a lot of goodwill” internationally. However, Porter questions whether the probable stimulus package will go to efforts that will strengthen our economic competitiveness, or if it will just be used to prop up the economy in the… Read More

Hussman: Market Undervalued, But Rally Won’t Last

John P. Hussman, Ph.D., president of Hussman Investment Trust, thinks the market is “undervalued” and guesses “that the general tenor of the market may remain tepidly positive for a few more weeks”. But, he warns we may “ultimately observe another frightening leg down in the first part of next year –- possibly to re-test the November lows”. Hussman doesn’t think the economy will begin to recover until the later part of 2009 and thinks stocks… Read More

Tilson: Subprime Was Just The Beginning — But Now Is Time To Buy Stocks

Think the subprime crisis was bad? The skyrocketing loan defaults and related corporate writedowns were just the first phase of a much wider housing crisis, fund manager Whitney Tilson and credit rating expert Sean Egan — both of whom predicted the subprime debacle — tell CBS’ 60 Minutes. The coming problems center on two other types of risky mortgages — so-called “Alt-A” and “Option ARMs” — that are starting to reset to much higher rates.… Read More

Five Top Managers Are Buying — Cautiously

Noticing a trend that we’ve picked up on in recent weeks, Fortune notes that several extreme value investors have begun to see good, safe buys in the current market. In an interview with the magazine, top fund managers Robert Rodriguez, Susan Byrne, Jeremy Grantham, Tom Forester, and Leslie Christian all tell Fortune that they’re seeing a attractive stocks in the market right now — though they all remain somewhat cautious in this unprecedented environment. Rodriguez,… Read More

Romney, Schmidt, Fiorina on The Crisis

David Gregory’s tenure on NBC’s “Meet The Press” got off to a particularly interesting start over the weekend, with former Massachusetts Gov. Mitt Romney, former Hewlett-Packard CEO  Carly Fiorina, Google CEO Eric Schmidt, and Wal-Mart CEO Lee Scott among those discussing the economic crisis. The consensus among the panelists was that the U.S. government needs to do more — a lot more — to help stimulate and stabilitze the economy. Fiorina, for example, says that… Read More

Turnaround Guru Calls for More Help for Mortgage Owners

John Bogle (“Help for Mortgage Holders Is What We Need”) isn’t the only influential voice saying that the government needs to focus more on mortgage owners if it wants to restore order to the economy. In Fortune’s 2009 investment preview, Wilbur Ross says that “homeowners have now lost $5 trillion, and 12 million families have mortgages in excess of the value of their homes. Therefore the economy will not stabilize until mortgages are adjusted down… Read More

Institutional Ownership Driving Momentum?

Another investment idea that piggy backs off of Bespoke Investment Group’s great research. Bespoke broke down the S&P 500 into groups of 50 based on levels of institutional ownership, and looked at the performance of those groups since the November 20th market low. What they discovered was that those stocks with the highest amount of institutional ownership were the best performers. Specifically, the most widely owned group of 50 stocks was up +35% since 11/20,… Read More

Commodities Specialist Rogers: Things Could Get Worse — Much Worse

While several prominent bears have turned bullish lately, there is by no means a consensus that we’re on the verge of a turnaround. Take Jim Rogers, the international investor and commodities guru who predicted the credit bubble crash two years ago. Rogers tells Fortune in its 2009 investment preview that “this may turn into the Great Depression II“. Rogers says that the lack of financing options for commodities firms means that commodity supplies are shrinking by… Read More

A Growing Chorus of Bulls

In this week’s Validea Hot List newsletter, Validea CEO John Reese writes that “more and more of the world’s most successful investors — including many who correctly believed that the market was overvalued before its recent crash — are saying that stocks are now good values”. Among them are Jeremy Grantham, David Dreman, Jeremy Siegel, Bruce Berkowitz, Warren Buffett, and Marty Whitman. The fact that these gurus are seeing value in the market is a… Read More

Muhlenkamp: Plenty of “Cadillacs” Selling on the Cheap

Ronald Muhlenkamp, who has headed Muhlenkamp & Company for more than 30 years, tells Forbes that “we’re seeing great companies at dirt cheap prices. And one thing I’ve learned … if you can buy a great value at a cheap price, just go do it.” In a wide-ranging interview with Steve Forbes, Muhlenkamp also says he believes the market’s recent plunge was driven by forced selling at hedge funds, many of which require that clients… Read More