Money and Finance
"Retailers are one of the few sectors that appear to be pricing in the fear of a recession," says Bill Nygren, manager of the Oakmark Fund (OAKMX). As a result, he believes that the shares are more attractive than other stocks, including many in the materials and technology sectors, whose still-lofty prices reflect little risk that the economy will stop growing. Retail stocks would outperform in a recession, he maintains, and could rally strongly if the economy keeps growing.
- Hussman Weekly Market Comment: Europe: Just Getting Warmed Up
Last week, the financial markets mounted a striking shift back to the "risk-on" trade, as investor concerns about a recession were abandoned, and Wall Street came to believe that Europe will easily contain its banking problems. Accordingly, downside protection...
- A Bargain Hunter Stands Tall
KIPLINGER'S: What were you doing as the markets gyrated so dramatically in the fall?- BERKOWITZ: Although the fall in stock prices hurt our performance, it has been a blessing. We've been buying companies at prices that even when I was in my most...
- Legg Mason Value Trust Releases Letter To Shareholders
The equity sell-off on October 19 was precipitated by the market's reaction to the earnings of two stalwarts of the commodities cabal, Caterpillar and Schlumberger, both of which surprised their fans by issuing less than stellar guidance. Cat went...
- Church & Dwight Co Inc.: Dividends Will Satisfy, Total Returns Look Dirty
One of my goals for the year was to increase my exposure to consumer staples companies in my portfolio. Consumer staples tend to have less fluctuations in their operations compared to other sectors of the economy. They also typically have pricing power...
- Pepsico Inc.: You're Paying Up For This Consumer Staple
Consumer staples companies are the bread and butter of the dividend growth philosophy. The biggest reason for that is the consistency in their operations. In general they have rather inelastic demand compared to other sectors of the economy and for the...
Money and Finance
Combing Through the Bargain Bin
AFTER SELLING OFF FOR WEEKS AMID CONCERNS about the health of the U.S. consumer, retail shares finally look like a bargain. Companies such as Macy's (ticker: M), Kohl's (KSS) and Home Depot (HD) have seen their stocks fall more than 30% from highs reached earlier this year, and now trade at levels last seen in 2005.
"Retailers are one of the few sectors that appear to be pricing in the fear of a recession," says Bill Nygren, manager of the Oakmark Fund (OAKMX). As a result, he believes that the shares are more attractive than other stocks, including many in the materials and technology sectors, whose still-lofty prices reflect little risk that the economy will stop growing. Retail stocks would outperform in a recession, he maintains, and could rally strongly if the economy keeps growing.
- Hussman Weekly Market Comment: Europe: Just Getting Warmed Up
Last week, the financial markets mounted a striking shift back to the "risk-on" trade, as investor concerns about a recession were abandoned, and Wall Street came to believe that Europe will easily contain its banking problems. Accordingly, downside protection...
- A Bargain Hunter Stands Tall
KIPLINGER'S: What were you doing as the markets gyrated so dramatically in the fall?- BERKOWITZ: Although the fall in stock prices hurt our performance, it has been a blessing. We've been buying companies at prices that even when I was in my most...
- Legg Mason Value Trust Releases Letter To Shareholders
The equity sell-off on October 19 was precipitated by the market's reaction to the earnings of two stalwarts of the commodities cabal, Caterpillar and Schlumberger, both of which surprised their fans by issuing less than stellar guidance. Cat went...
- Church & Dwight Co Inc.: Dividends Will Satisfy, Total Returns Look Dirty
One of my goals for the year was to increase my exposure to consumer staples companies in my portfolio. Consumer staples tend to have less fluctuations in their operations compared to other sectors of the economy. They also typically have pricing power...
- Pepsico Inc.: You're Paying Up For This Consumer Staple
Consumer staples companies are the bread and butter of the dividend growth philosophy. The biggest reason for that is the consistency in their operations. In general they have rather inelastic demand compared to other sectors of the economy and for the...