“Smooth” Recoveries Rarely Occur, Says Dorfman

Growth in manufacturing activity and industrial production have slowed a bit recently, leading many to fear a double-dip recession is coming. But columnist and money manager John Dorfman — one of the few strategists who was offering optimism heading into the 2009 rally — is still optimistic. “One reason these figures don’t shake my confidence too much is that I’m old,” Dorfman writes in the New Jersey Star-Ledger. “Having lived through nasty recessions in the… Read More

Guru Strategy 7-Year Report Card: Ben Graham Still on Top

More than three decades after his death, Ben Graham is still beating the market. At least, Graham’s strategy is still handily beating the market, according to Validea.com’s guru-inspired portfolios, the original 10 of which recently hit the 7-year mark in terms of performance tracking. And the results show that Graham, known as “The Father of Value Investing”, is still king. From its July 15, 2003 inception through July 15 of this year, Validea’s 10-stock Graham-inspired… Read More

Dreman: Time to Seize Opportunities

In his latest Forbes column, David Dreman says fears of Europe’s demise — and an ensuing global economic downturn — are overblown. “It’s as if people were having nightmares of hobnailed Nazi boots filling the streets,” Dreman writes. In the U.S., he says ten-year Treasury yields of 3% demonstrate just how much fear is in the market: “That sounds like a flashback to the Great Depression,” he says. In reality, things aren’t so bad, according… Read More

Dreman Finding Value Amid Fear

Contrarian guru David Dreman says that while he expects significant volatility going forward, he’s still finding value in the market. “I think while value is there, we’re all going to have to have much more cast-iron stomachs to be able to go through this,” Dreman tells CNBC. “But at the same time I think stocks are pretty cheap and we will see higher prices a couple years out.” He sees opportunities in some fear-filled areas… Read More

Dreman: Large-Cap Value Still a Good Place to Be

Add another top strategist to the list of those targeting large-cap stocks. In his latest Forbes article, contrarian guru David Dreman says large-caps have been lagging their smaller peers for a decade, and are now cheaper than mid- and small-caps, meaning they are due to outperform. Over the last 10 years, he says, the Russell large-cap index (which includes stocks with caps over $12.2 billion) has returned just 0.5% per year. The Russell mid- and… Read More

Getting Contrarian with the Dreman Strategy

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 David Dreman-inspired contrarian strategy, which has averaged returns of more than 8% per year since its inception more than six years ago. Below is an excerpt from today’s newsletter, along with several top-scoring stock ideas based on the Dreman investment strategy. Taken from the April 30, 2010 issue of The… Read More

Dreman on Inflation, and Why He Likes the U.S. over Foreign Markets

Legendary contrarian investor David Dreman is, not surprisingly, maintaining his contrarian approach these days, keying in on two unloved investments: stocks and real estate. “Everything people are cowering away from today I would prefer to invest in,” Dreman says in a recent interview with GuruFocus.com. “If we have an inflationary environment, value stocks should do well over the next 4-5 years. And can I say this dirty word: real estate. Real estate has been hit… Read More

Dreman on Fighting Inflation

As the past couple years have shown, it can be risky to own stocks. But, Forbes‘ David Dreman says, steering clear of equities is also a gamble. “Is it risky to own stocks? Sure — it always was,” Dreman writes in his latest column. “But it’s also risky not to own them. If you have all your money in bonds you run the risk that inflation will come back and ruin you. I consider inflation… Read More

Dreman: Correction, Major Inflation Coming

Noted contrarian investor and author David Dreman says a correction is coming for the stock market — but he says investors are best off just holding their ground and riding through it. In an interview with Fox Business, Dreman says it’s too hard to tell exactly when the correction will occur. And, given his belief that stocks are headed higher over the longer haul, he says investors shouldn’t try to time the correction. Dreman also… Read More

Are Stocks & Real Estate the Places to Be?

Known as the dean of contrarian investing, David Dreman is staying true to his against-the-tide approach, telling CNBC that he thinks stocks and real estate — two of the areas hit hardest in the past couple years — are the place to be moving forward. (Thanks goes to Value Investing Pro for posting the video.) Dreman says he thinks the stock market will be volatile but overall be “much higher” over the next three to… Read More