The man who built the Fidelity Magellan fund into a juggernaut back in the 1980s loves stocks. In fact, Peter Lynch says market bargains soon are going to be so plentiful now, “you feel like a mosquito in a nudist colony.”
The Washington Post talked to Lynch, Random Walk author Burton Malkiel and Pimco chieftain Bill Gross about their current view of the markets.
The answers were predictable, but still.
•Malkiel: “I think you ought to buy a total bond market fund that has safe Treasury bonds, and also corporate bonds which now have very generous spreads over Treasurys.”
•Gross: His money’s in bonds, both corporate and municipal. And, he doesn’t own a single stock.
•Lynch: He’s singing his song, telling people to find 10 stocks they know cold, then buy them when the opportunity is right. He’s feeling good about time horizons of 10 and 15 years.