Herro's Take On Greece

Recently, David Herro of Harris Associates spoke to CNBC about his thoughts on the Greece instability, and how that affects European investments — and the top fund manager’s outlook may well surprise you.

Herro’s Take On Greece

Recently, David Herro of Harris Associates spoke to CNBC about his thoughts on the Greece instability, and how that affects European investments — and the top fund manager’s outlook may well surprise you.

Gross: U.S. Is “Cleanest Dirty Shirt”

PIMCO bond guru Bill Gross says that the U.S. is currently offering the best of several bad options for bond investors. “It’s what we call the cleanest dirty shirt, and at the moment the cleanest dirty shirt is the United States,” Gross told CNBC’s Street Signs. “It’s Treasurys, it’s those 1.75 percent 10-year Treasurys that are definitely overvalued but at a time of crisis appreciate in value or least least hold their value.” Gross also says… Read More

Siegel: ECB Should “Backstop” Debt; U.S. Should Wait on Austerity Measures

Author and Wharton Professor Jeremy Siegel says that the European Central Bank should provide the liquidity needed to help the debt crisis in Europe, and that such a plan doesn’t need to involve a full bailout of Greece. Siegel says it could involve a multi-trillion-euro “backstop” of debt guarantees, and says that such a move could spur European stocks to jump 15% to 20% in a single day. Siegel also says that because consumers are… Read More

The Problems with Debt-to-GDP Ratios

U.S. debt is climbing toward 100% of GDP — a figure that many are seeing as magic number that portends doom. But Yale Economist Robert Shiller says that logic is flawed — very flawed. “Could it be that people think that a country becomes insolvent when its debt exceeds 100% of GDP?” Shiller writes for Project Syndicate. “That would clearly be nonsense. After all, debt (which is measured in currency units) and GDP (which is… Read More

Herro: Greece Won’t Drag the World Down

While the market has been fretting over the debt situation in Greece, Morningstar Fund Manager of the Year David Herro says that, while Greece’s woes provide a cautionary tale, they won’t take down the global economy. “We do not believe Greece will stop, or even slow, the growth of global prosperity, which not only enhances the environment for profit growth, but also improves living standards around the world,” Herro writes in commentary on Oakmark’s web… Read More

Rogers: Let Greece Fail

Commodities guru Jim Rogers says that Europe should let Greece default on its debt, and that the U.S. Federal Reserve needs to stop printing money, or else risk creating another serious financial crisis. Rogers tells Bloomberg that history shows the longer one delays dealing with a debt crisis, the more trouble it creates. He opposes further Greece bailouts, saying they are really bailouts of banks from France, Germany, and other countries that made bad loans… Read More

Fisher: European Fears Overblown

In his latest Forbes column, Kenneth Fisher says that fears about Europe’s debt problems are overblown, and that credit ratings agencies have only added to the hype. “It’s simply astounding, after all we’ve seen in recent decades, that anyone pays attention to credit ratings put out by the officially sanctioned rating agencies,” Fisher writes. “Moody’s and Standard & Poor’s compound investors’ worst sins, including the tendency to make a mountain out of a molehill.” Noting… Read More