Chris Fournier, On Tuesday August 30, 2011, 8:58 am EDT
The global economic crisis is leading to a possible “developed economy” recession in the U.S. and Europe, which may be hard to alleviate, according to Pacific Investment Management Co.’s Bill Gross.
In this environment, the world’s biggest manager of bond funds favors investing in Australia, Mexico, Brazil and Canada, along with non-dollar currencies that have strong ties to the Asian […]
Richard Russell’s latest letter is something that most investors can probably sympathize with to some degree. While it’s clear that the equity markets are in the midst of a bull market, it’s less clear whether now is still a good time to be buying. Russell, while acknowledging that this is certainly a bull market, prefers not to be overweight equities for one single reason – the values just aren’t that […]
“What we’ve got right now is almost near panic going on with money managers and people who are responsible for money,” he said. “They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.
“We need to find real yield and real returns […]
Marc Faber is out with his latest issue of the Gloom, Boom and Doom Report, which is always a must read for serious investors. This monthâ€™s report covers his outlook for the stock market, gold, oil, and the future for the US and global economy. Here are some of the highlights:
1. Stock Marketâ€“Still bearish in the short-term. Faber cautions against being bearish longer-term as long as the world […]
by David Rosenberg
1. In Barronâ€™s look-ahead piece, not one strategist sees the prospect for a market decline. This is called group-think. Moreover, the percentage of brokerage house analysts and economists to raise their 2011 GDP forecasts has risen substantially. Out of 49 economists surveyed, 35 say the U.S. economy will outperform the already upwardly revised GDP forecasts, only 14 say we will underperform. This is capitulation of historical proportions.
Shilling is definitely worth listening to. He predicted 2008 meltdown. Consider these forecasts Shilling put out at the beginning of 2008:
* 1. Sell or sell short homebuilder stocks and bonds. * 2. If you plan to sell your home, do so yesterday. * 3. Sell short subprime mortgages. * 4. Sell or sell short housing-related stocks. * 5. Sell or sell short consumer discretionary spending companies. * 6. Sell […]
The dividend yield (which can’t be faked like profits) is in an historically extremely low range at just under 2%.
The lowest recorded yield was — guess when — the beginning of the new century when it was barely over 1% (along with the highest PE in history at about 44.
Since then, as the markets sold off, rallied, sold off again, and now rallied somewhat again to the level […]