Value strategist Ron Muhlenkamp says he’s not finding a lot of value in the stock market right now. And while he doesn’t think a recession is around the corner, he says he is finding that a whole lot of potentially dangerous margin debt is piling up.
Top value investor Ron Muhlenkamp says he’s holding more cash than he normally would in a recovery, because of concerns about European debt, the U.S.’s balance sheet, and China’s tightening. But, he says the time to go all in on stocks may be nearing. “When we resolve this — if November 2012 comes out the way I hope it will and frankly think it will — I will probably put in my last nickel and… Read More
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… Read More
Top value investor Ron Muhlenkamp says he’s finding attractive stocks in the market right now, but that continued selling because of fear or a need to meet margin calls could keep stocks headed downward in the short term. “If we see signs of indiscriminate selling, we will continue to move to a cash position in order to sidestep the decline; otherwise, we will be looking to invest in companies we think will do well going… Read More
Top value investor Ron Muhlenkamp says big international growth stocks like Intel look attractive right now. “It is fascinating that Intel sells for just 10 times earnings,” Muhlenkamp tells Money Magazine. “Intel dominates the chip market, and its balance sheet is rock-solid. And it has a 3.3% dividend yield — that is irresistible.” Muhlenkamp also talks about his strategy, saying that he looks for firms with strong returns on equity, and low debt. “We see… Read More
Top value investor Ron Muhlenkamp says that stocks appear “fairly priced”, and that he expects to see equity prices becoming more volatile. In his latest quarterly letter, Muhlenkamp says he thinks stocks have continued to climb a wall of worry in recent months because of the attractive prices that existed six months ago; the U.S. economy continuing to grow modestly; and the Federal Reserve’s latest round of quantitative easing. (A tip of the cap to… Read More
Top value investor Ron Muhlenkamp is finding value in large-cap technology stocks, as well as some picks in the automobile industry. “European banks and insurance companies were big sellers of big-cap technology in 2010 when the extensive problems in Europe were being revealed,” Muhlenkamp tells TheStreet.com. “Pressure has kept stocks cheaper than they otherwise would have been. When we look for values in the current marketplace, we are finding them in big-cap tech, particularly IBM,… Read More
In his year-end letter, Ron Muhlenkamp says that, after being cautious for most of 2010, he gained confidence in the U.S. economy toward the end of the year and is now “near fully invested”. In the U.S., Muhlenkamp says the extension of the Bush-era tax cuts should help increase employment, but he also says state and municipal budget strains are a concern. Abroad, he says the European debt crisis isn’t over, and that China is… Read More
Value manager Ron Muhlenkamp, whose fund has beaten the S&P 500 by about 5% per year over the past decade, says he’s keying in on several financial services firms, as well as technology stocks. Muhlenkamp tells CNBC that he thinks that, while people are now saving more of their money, they’ll eventually want to return to riskier assets. When that does happen, investors will be turning to financial services firms for advice on how to… Read More
Value investing guru Ron Muhlenkamp says that because of advances in drilling techniques, we’re about to see a “dramatic increase” in the use of natural gas in transportation — which bodes well for firms that deal in the clean-burning fuel. “We’re about to see a dramatic increase in the use of natural gas in transportation,” Muhlenkamp writes for Forbes. “Recent improvements in drilling technology and techniques have significantly increased the amount of gas available at… Read More
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