Photo: Bloomberg Television
This should be great.Investing geniuses Bill Miller (Legg Mason) and Paul McCulley (formerly of PIMCO) are going to be on Consuelo Mack WealthTrack.
Here’s what we were sent by their PR. Note that at the bototm both say that the bond bull run is over.
Consuelo Mack WealthTrack “Great Investors Exclusive: Bill Miller & Paul McCulley, Part 1”
Premieres nationally beginning Friday, April 6 at 7:30 p.m. on public television (check local listings) & online at wealthtrack.com beginning Monday, April 9
In part one, “Great Investors” Bill Miller and Paul McCulley explain why new thinking and strategies are essential to succeed in today’s complex global markets:
*Miller explains why “ultimately, the entire model of economics needs to change” and why he predicts “the 30-year bull market in bonds is over in the U.S.” as well as many other countries. McCulley agrees on both counts.
*McCulley talks about:
1) Why Federal Reserve policy is not as effective in today’s economy as it has been in the past.
2) Why the European Central Bank’s (ECB) recent agreement to loan massive amounts of money to commercial banks is a “game changer” and a positive for stocks
3) Why he is looking at residential real estate in the U.S., “truly a hated asset class.” He thinks, “There is value in the notion of roofs, because you’ve got to have one!”
Consuelo Mack WealthTrack “Great Investors Exclusive: Bill Miller & Paul McCulley, Part 2”
Premieres nationally beginning Friday, April 13 at 7:30 p.m. on public television (check local listings) & online at wealthtrack.com beginning Monday, April 16
In part two, “Great Investors” Bill Miller and Paul McCulley reveal which investments they are choosing for the long term.
*A market cliché is that the markets hate uncertainty. Both believe some major uncertainties have faded, including the threat of a serious recession, or worse, in the U.S. and Europe.
1) Biggest potential negative: higher oil prices. McCulley thinks they are the biggest risk to consumer spending, and thus the economy and stock market, over the next several months.
2) Biggest potential positive: the housing market, which they both believe is hitting bottom.
*Both say the 30-year bull market in bonds has ended.
1) Miller believes large brand name U.S. companies offer the most value in the markets for the next 5 years or so. He explains why Apple and Google are two of his fund’s largest holdings.
2) McCulley favours consumer companies in emerging markets to take advantage of the rising middle class there.
3) McCulley also believes retirees are going to continue to be disappointed with the income they receive from their investments. He is personally investing in municipal bonds. He also says retirees are going to have to go into principal to support themselves and advocates higher-yielding annuities as a substitute to low-yielding bonds.