Bill Miller say stocks are cheap and says 20% upside in markets coming!!!!!!

Discussion in 'Economics' started by S2007S, Oct 20, 2010.

  1. S2007S


    Well, well, well, well, well mr bill miller is speaking about how cheap stocks are and how he thinks markets will rise 20% in 2011, he even says NOW is the BEST time to buy stocks since the 1980's. Wow that coming out of bill miller of course wouldn't surprise me one bit. I am sure I can pull up an article from around 2007 or 2008 or even 2009 when he says stocks were cheap because to him stocks are always fucking cheap, even after the bottom in 2008 and stocks rising hundreds of percent and in some cases thousands of percent from their all time lows set just 2 years ago he thinks now is the best time to buy since the 1980's. Another joke of an article from cnbc. This whole market is one sided, completely driven by fed printed dollars and no real growth coming from really anywhere as bubble ben bernanke works his magic.

    Best Time to Buy Stocks Since 1980s: Legg Mason's Miller
    Published: Wednesday, 20 Oct 2010 | 11:12 AM ET
    Text Size

    Stocks are cheap right now and it may be the best time to buy them since the early 1980s, Legg Mason Capital Management Chairman and CIO Bill Miller told CNBC Wednesday.
    Source: Logg Mason
    Bill Miller

    "The last ten years have conditioned people to think short term as opposed to long term," Miller said. "Now, stocks are cheap and people should buy good, quality companies at reasonable prices, put them away and ignore the day-to-day fluctuations of the markets. It's the best time since the early 1980's to buy."

    Miller also said he thought the market would be on the upswing over the next year. "I wouldn't be surprised if the market isn't up 20 percent in the next 12 months," Miller went on to say.

    Miller said he preferred stocks to bonds right now, based in part by what the Federal Reserve might do with buying more bonds and increasing the money supply—known as quantitative easing.

    "The Fed is going to put more liquidity into the economy, the monetary basis is going to grow as a result of that, but stocks are just incredibly cheap as opposed to bonds and inflation is effectively zero to one percent." Miller said. "And so you have free-cash-flow yields of the overall stock market right now around 7 percent and about a third of the stock market has a free-flow yield of about 10 percent, and with people trying to buy Treasurys at 2.5 that is just incredibly attractive."

    Miller added that some companies need to increase their payout ratio—or earning dividends to shareholders—and stop hoarding so much cash. He cited Hewlett Packard as one company that needs to raise its payout.

    "Right now, you have companies, like HP holding cash or are over capitalized. But if payout ratios were higher than they are today, then people would have more money in the stock market," Miller said. "HP hasn't raised it's dividend in five, six years. If they and other companies paid out 70 percent the stock could be up 50 percent easily."

    As for sectors he likes, Miller cited financials, health care and tech.

    Stocks Miller likes:

    Merck [MRK 37.0701 0.5501 (+1.51%) ]

    Amgen [AMGN 58.2332 0.9032 (+1.58%) ]

    Gilead [GILD 38.862 2.132 (+5.8%) ]

    Wells Fargo [WFC 25.315 0.765 (+3.12%) ]

    Goldman Sachs [GS 157.34 0.62 (+0.4%) ]

    IBM [ Loading... () ]

    Hewlett Packard [HPQ 43.0415 0.2115 (+0.49%) ]

    Intel [INTC 19.64 0.43 (+2.24%) ]
  2. Watching the GLobal Markets Reaction to UK's announment....which was all positive from Brazil on...

    I agree with Bill. Markets World Wide could move another 20% next year.

    INDU will still have Low Volume IMHO...but I can see that happening.

    NOV 2 Liberal Slaughter...GRID LOCK.

    QE2 Nov

    All this is good for the Markets. Of course, not so good for Main Street as Unemployment will continue to rise, energy cost will rise and agi cost will rise.

    Nevertheless...Wallstreet is not Main Street and Vs. Versa. Class divde will continue and there will be a lot of loosers. But, this will not effect the markets over all.

    Bill may be on to something.
  3. we probably shouldnt forget that he rode them down something like 50% in the crash.
  4. S2007S


    Yep because thats what we want, higher energy and agi costs, because there not high enough already, prices are out of control as the costs of food and energy continue to soar, forget what the cpi shows, go right down to your supermarket and just look at the prices, its fucking out of control whats going on. The only people feeling this wealth are a selected few people, ask how the other 45-50 million living within the poverty level how they feel about this economy. This is a completely one sided economy.
  5. Visaria


    I don't like this money printing policy any more than the next man.

    But...if you can't beat them, join 'em.

    If you want to preserve your own personal wealth, you pretty much have to buy real assets. I'm sure you would rather be in the few percent that protect their wealth compared to vast majority who will not.