“Ignore the crowd” is the motto of this week’s Great Investor guest and Fairholme Fund’s Bruce Berkowitz. Berkowitz, who rarely sits for television interviews, said on WEALTHTRACK that he had his work cut out for himself, defending Fairholme Fund’s losing record last year.
BRUCE BERKOWITZ: IGNORE THE CROWD
AVOID THE UNDERPERFORMANCE TRAP!
Choose funds based on management, culture, long-term track records, and match their risk profile with your tolerance level…AND STICK WITH THEM! Watch this episode here.
THINK LIKE A CONTRARIAN AND SELECTIVELY INVEST AGAINST THE CROWD
Wintergreen Fund (WGRNX) First Eagle Global Fund (SGENX) Watch this Episode
David Winters:The Optimist Portfolio Manager
Central bankers are clearly worried about global growth. From the U.S., to Europe, to Asia, we have seen unprecedented levels of easing in recent weeks. By independent research firm ISI Group’s count, there have been more than 250 stimulative policy initiatives announced over the past 13 months. The firm also points out that we are less than 100 days from the famous fiscal cliff in the U.S., when numerous Bush era tax cuts expire and automatic spending cuts take effect if Congress and the White House can’t reach a budget compromise. If they don’t, estimates are that GDP growth could be reduced by as much as 3.5%, sending the economy into recession.
CONSIDER INVESTING IN REITS THROUGH A TRADITIONAL REIT INDEX FUND
Morningstar recommends: Vanguard REIT Index ETF (VNQ) VNQ data by YCharts Morningstar also recommends holding REITs in a tax deferred account, such as a 401k, because their dividends are taxed as regular income. Watch This Episode
James Grant: The Federal Reserve’s Most Outspoken Critic
Federal Reserve Chairman Ben Bernanke has been widely credited with playing a key role in saving the global financial system from spiraling into a deeper recession. As a recent Financial Times headline read, “Central Bank Action Lifts Gloom”; “Bold Fed and ECB Moves Cheer Investors- Confidence Increases in U.S. and Europe.” There is no question […]