Tuesday, August 24, 2010

Putting Things Into Perspective

Wells Fargo (WFC) had a book value of $13.58 and the market felt the stock was worth over $35 at the end of 2006.

Wells Fargo now has a book value of $21.35 and the market believes the stock is worth less than $24. Is the market right and Wells is really worth $24 or was it actually wrong in 2006 and now?

I am aggressively buying Wells Fargo at these prices.

Monday, August 23, 2010

More Reasons to be Bullish on Stocks

A great article from Doug Kass that describes why it's time to be bullish on stocks:

Kass: The Scale Tips to the Bullish Side

Some standout information from Kass:

"In a Friday conference call, JPMorgan's Tom Lee observed that the performance between bonds and stocks over the past 10 years has never been as wide in any decade in history. Whenever stocks have a negative 10-year gap in performance relative to fixed income, the average yearly return in the following decade is approximately 13%."

"Risk premiums (the difference between the earnings yield of the S&P index and the 10-year U.S. note) is at the highest level since the beginning of the modern era's bull market that began in the early 1980s."