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Marc Faber reiterates his negative outlook, saying the S&P may drop 20% from here. "The...

Marc Faber reiterates his negative outlook, saying the S&P may drop 20% from here. "The economy has stabilized but isn't really expanding... Profits have been boosted by aggressive cost-cutting. The revenue side of corporations is weak." But Legg Mason's Bill Miller refutes Faber's doomsday view, saying that "10 years ago, stocks were expensive. Today they are not."
Comments (4)
  • Harry Tuttle
    , contributor
    Comments (2221) | Send Message
    Bill Miller? This is the buy who was long Fannie Mae and Countrywide with other people's money, correct?
    27 Jan 2010, 12:30 PM Reply Like
  • user344210
    , contributor
    Comments (219) | Send Message
    Miller claims that only his forecast is "data-driven". To me, that's always a specious claim. What did Faber do to get his forecast, read entrails?
    27 Jan 2010, 12:32 PM Reply Like
  • nightfly
    , contributor
    Comments (1017) | Send Message
    Are customer's fleeing from Legg Mason? Sounds like someone is talking their book in an attempt to stem the tide.
    27 Jan 2010, 12:42 PM Reply Like
  • radicall
    , contributor
    Comments (534) | Send Message
    Talking Dollar and cents strategy.. I think it might be a bit late to initiate short positions right now - unless there is a significant bounce.


    If you are in cash or bonds .. a good idea to buy some Consumer staples / drug companies/Utilities (low beta) here. If the market drops more, buy a bit of higher beta names - commodities, miners, oil service names. That is my strategy anyhow....
    27 Jan 2010, 02:45 PM Reply Like
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