Top value investor Ron Muhlenkamp says the Federal Reserve’s “twist” plan is counterproductive and will end up resulting in the opposite of what is intended. Muhlenkamp says the Fed is doing more to keep interest rates low “as if the reason people weren’t buying houses had anything to do with interest rates”. He says lower interest rates will end up leading to people spending less, particularly those who are retired or nearing retirement. Muhlenkamp says he’s holding more cash than usual, and is finding the best values among higher quality stocks, which he calls “Cadillacs” — that is, companies with rock-solid balance sheets, good cash flows, and solid dividend yields. “The Cadillacs are selling cheaper than the Chevys,” he says.