(GuruFocus, June 23, 2009) Found this article in Reuters on David Dreman’s view on the current market. Take-away points:
1. David Dreman is buying stocks and avoiding corporate bonds and U.S Treasuries due to concerns about inflation.
2. He thinks we are going to have some of the worst inflation.
3. He thinks real estate may be a good investment.
4. "Probably the two worst investments over the past two, three years have been stocks and real estate," Dreman said. "They could be the best investments two or three years out."
5. But he himself is does not invest in real estate, and he is also avoiding bonds, including corporate debt, Treasuries and TIPS, or Treasury Inflation-Protected Securities.
6. Dreman thinks the U.S. recession that has lasted about 18 months is nearly over, but problems in the banking sector are likely to linger, he said.
7. Dreman cut staff from his Dreman Value management company in May after poor performance in 2008 cost him one of his biggest clients, DWS Investments.
8. The DWS Dreman High Return Fund KDHAX.O that he managed for DWS Investments fell 45.5 percent in 2008, spurring DWS to fire him in April. He bought a number of stocks that seemed cheap, such as Fannie Mae (FNM, Financial) and Freddie Mac (FRE.), but they declined in price.
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1. David Dreman is buying stocks and avoiding corporate bonds and U.S Treasuries due to concerns about inflation.
2. He thinks we are going to have some of the worst inflation.
3. He thinks real estate may be a good investment.
4. "Probably the two worst investments over the past two, three years have been stocks and real estate," Dreman said. "They could be the best investments two or three years out."
5. But he himself is does not invest in real estate, and he is also avoiding bonds, including corporate debt, Treasuries and TIPS, or Treasury Inflation-Protected Securities.
6. Dreman thinks the U.S. recession that has lasted about 18 months is nearly over, but problems in the banking sector are likely to linger, he said.
7. Dreman cut staff from his Dreman Value management company in May after poor performance in 2008 cost him one of his biggest clients, DWS Investments.
8. The DWS Dreman High Return Fund KDHAX.O that he managed for DWS Investments fell 45.5 percent in 2008, spurring DWS to fire him in April. He bought a number of stocks that seemed cheap, such as Fannie Mae (FNM, Financial) and Freddie Mac (FRE.), but they declined in price.
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