As the only fund manager that has beaten S&P500 in the last 14 consecutive years, Bill Miller’s view on the stock market deserves attention: “In my view, two things have kept our market from participating in the global rally: oil prices and the Fed. I think things are about to change, and soon. Indeed, they have already begun to change, and I believe the US market will begin to take notice in fairly short order. The old leadership in the market -- oils, utilities, REITs, commodity related names, and housing -- have all corrected more than the market in the most recent decline. This often suggests a change to new leadership. New leadership usually consists of those groups, sectors, or areas that are cheap, have performed poorly, and where expectations are low. The leading candidate that meets those criteria is the mega cap S&P 500 names, the group that peaked in early 2000 and that has trailed the mid and small caps ever since. Within that group, financials and technology appear most attractive, with low valuations, excellent balance sheets, and lots of share repurchase activity."
http://www.leggmason.com/funds/knowledge/management/Bill_Miller_October2005_Commentary.pdf
http://www.leggmason.com/funds/knowledge/management/Bill_Miller_October2005_Commentary.pdf
