June 2009: David Dreman presentation to Forbes Investors Cruise: "The Financial Meltdown: Depression or Major Market Opportunity Ahead?"
Looking to the Future:
Too early to call a new bull market; not too early to say the worst is likely over
March –April ’09: sharpest rally since 1933
Stocks begin to double off their lows–Examples: GE, Bank of America, Citigroup
Earnings forecasts, while still depressed, begin to rise: We forecast earnings will gradually move higher–If the market concurs we should see stock prices advance sharply
With trillions of dollars poured into worldwide recovery we should see the highest inflation since the 1970s –80s–Devastating for bond markets, Treasuryswill perform poorly
Keep your maturities short!
The worst investments of the last few years, Stocks and Real Estate, are likely to be the best performers in our opinion
– Stocks typically fare well in inflationary or hyper-inflationary periods