Where Some Market Gurus Are Investing ~ market folly

Thursday, February 5, 2009

Where Some Market Gurus Are Investing

Recently, some 'market gurus' spoke up about where they are investing in these challenging times and we wanted to highlight some of the results:

John Bogle, the founder of Vanguard

  • Roughly 25% in stocks
  • Says: "I earn my money and spend my money in dollars, and I don't need to take currency risk."

David Dreman, the contrarian and manager of Dreman Value Management
  • Roughly 70% stock allocation
  • Likes oil and gas exploration and production companies such as Apache (APA), Anadarko Petroleum (APC), & Devon Energy (DVN)

Burton Malkiel, economics professor at Princeton and author of A Random Walk Down Wall Street (which we highly recommend).
  • Bumped up his allocation to tax-exempt bonds due to great yields

Jeremy Siegel, professor of finance at the University of Pennsylvania's Wharton School and senior advisor to WisdomTree
  • Raised allocation to junk bonds
  • Says: "Stocks and high-yield bonds will move together as the crisis passes."
  • 1/4th to 1/3rd of foreign stock allocation in emerging markets: "They've gotten cheap enough to really give value now."
  • Added U.S. real estate investment trusts to his portfolio

Muriel Siebert, founder of Muriel Siebert & Co
  • Buying Pfizer (PFE), Altria (MO), & General Electric (GE)
  • Says: "I don't mind buying a stock on the bottom and waiting. But I do think when you get a market like this, you should be paid while you wait" (hinting at the solid yields of those stocks).

Jim Rogers, founder of the successful, now defunct Quantum fund (along with George Soros). Also author of Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market
  • Putting new money into Chinese shares, focusing on buying agriculture, water, infrastructure. Also focused on putting new money into commodities, particularly agricultural ones.

Link: WSJ

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