How do “value” gurus determine worth? Bill Miller spent 30 years at the helm of Legg Mason Value (LMVTX), buying companies that he believed were deeply discounted. This often meant that he would purchase shares of a company where the market had priced the shares less than what was on the accounting books; sometimes, he might acquire shares for less [...] Continue Reading...
Last October, enthusiasm for Brazil had reached epic proportions. And why not? Not only had the iShares MSCI Brazil Fund (EWZ) risen 175% off its November 2008 lows, but the country constitutes one of the essential building blocks in the BRIC (Brazil, Russia, China, India) fortress. Indeed, the country boasts the world’s 7th largest economy, a consumption-oriented middle [...] Continue Reading...
Roughly two-thirds of all Americans express a pessimistic outlook on the economy as well as its future. Perhaps ironically, CNBC recently reported that wealthier citizens are even more downbeat than the nation at large. One might hope that the bleak view is “transitory.” However, the middle class, upper-middle class and wealthiest among us are seriously skeptical about their prospects. Need [...] Continue Reading...
It often pays to gander at individual companies that are languishing on the list of New 52-Week Lows. In general, if you identify a number of brand name corporations that fit into a particular industry, there’s a high probability that a Sub-Sector ETF has been rattled as well. For instance, Bank of America (BAC) and Hudson City Bancorp (HCBK) reached [...] Continue Reading...
Riding the China equity wave since the 3rd week of February hasn’t been that difficult. There have been dozens of reasons — fundamental, technical, contrarian, historical — to revisit the mainland. (See “3 More Reasons To Rethink Your China Allocation.”) On the other hand, selecting the best exchange-traded fund for the job may not have been as [...] Continue Reading...
Over the last 30 days, size has mattered. Large-Cap ETFs have been significantly outperforming Small-Cap ETFs. A similar event has taken place with respect to different investing styles — value and growth. Specifically, over the last month, value-oriented ETFs have picked up ground on growth-oriented ETFs. The shifts may be subtle. In fact, these changes may not even last. Nevertheless, they are definitely [...] Continue Reading...
Financial papers mention items on the “here’s-what-could-go-wrong” list. They’ll cite the uncertainties surrounding U.S. home price depreciation, state insolvency, European nation credit flare-ups and emerging country inflation. Nevertheless, the commonplace assumption is that the healing will continue. And the investment community is eating it up. On the first day of 2011 trading on the U.S. exchanges, the appetite for risk came in a variety [...] Continue Reading...
The early 80s may accurately capture my transition to adulthood. Yet the 70s have a grip on a treasure trove of childhood memories — from iZod shirts to Schoolhouse Rock to the Dallas Cowboy Cheerleaders. The 70s also bring back a less nostalgic activity… waiting on gasoline lines that stretched about a 1/2 mile down Route 22. Well, to be fair, [...] Continue Reading...
Notre Dame’s Fighting Irish may have fans singing its football praises for pounding an Army squad 27-3. Yet the third weekend of November brought little cheer for Ireland itself, as the country conceded its need for a financial bailout. Meanwhile, the European Union and the world at large have been desperately trying to avoid the dreaded debt scare from spreading. The problem is… [...] Continue Reading...
The Economist Intelligence Unit forecasts GDP growth in 2011 for 40 out of 42 of the world’s largest economies. If those countries are going to contribute positively to the current global industrial cycle, manufacturers will require more oil, gas, corn, wheat, potash, aluminum, coal, silver, rare earth metals and a wide array of commodities. It follows that many thinkers [...] Continue Reading...
