Business Insider's best investing stories of the week ended September 22 – Business Insider – Business Insider

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Dear Readers,

After a recent bout of selling, the S&P 500 finds itself as the next major US index on the brink of a 10% correction. It joins the comparatively tech-heavy Nasdaq Composite, which has been in correction territory for a couple weeks.

Between these stock struggles and near-record-low bond yields, it’s become increasingly difficult to find market returns. That’s forced the world’s foremost investing experts to adjust their strategies on the fly. 

Troy Gayeski, co-chief investment officer of $7.5 billion SkyBridge Capital, is one notable example of someone getting creative amid slim pickings. He recently shared with Business Insider the less-traveled corners of the market he’s eyeing — and broke down a trio of hedge funds he’s piling into.

If you aren’t yet a subscriber to Insider Investing, you can sign up here.

Meanwhile, strategists at Society Generale have just about had it with lofty tech-sector valuations. They recently shared a few compelling alternative to tech stocks, including trades poised to turn around after getting pummeled by the pandemic.

And at Morgan Stanley, one market-research chief warns that investors aren’t worried enough about the prospect of higher rates. The firm suggests three portfolio shifts traders can make to safeguard portfolios.

Going beyond this array of actionable advice, see below Business Insider’s best Investing stories of the week. They include a wide array of additional recommendations, strategies, and tips for navigating uncertainty.

Thanks for reading!

— Joe


Tocqueville Asset Management L.P.

Paul Lambert, the portfolio manager of the $88.5 million Tocqueville Opportunity Fund, returned 45% to investors last year.

The 34-year-old investor has returned 23% year to date and is sifting through opportunities in the technology, healthcare, and industrials sectors. He makes the case for five high-conviction winning stocks in his portfolio.

Read the full story here:

Paul Lambert returned 45% to investors in 2019 and is crushing the market again this year. The solo fund manager lays out his strategy for finding winning stocks — and shares 5 of his top picks today.


HENNY RAY ABRAMS/AFP/Getty Images

Tony Saliba, a legendary options trader and author of “Managing Expectations,” almost blew through $50,000 that was allotted to him before cultivating a successful methodology.

Saliba refers to his trading approach as a “matrix.” He essentially employs three strategies and militantly controls his risk. According to a 1989 interview with Jack Schwager for his classic “Market Wizards” series, Saliba strung together 70 straight months of profits exceeding $100,000.

Read the full story here:

Legendary options trader Tony Saliba famously put together 70 straight months of profits greater than $100,000. Here’s an inside look at the strategy that propelled him to millionaire status before age 25.


Getty Images

Cyril Moulle-Berteaux, head of global multi-asset team, and Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management, shared their contrarian views about the US elections, the stock market, and a vaccine in a recent panel discussion.

The two senior investors are positioning their portfolios to buy cheap stocks across countries and sectors as others crowd into large-cap tech names or wait on the sidelines.

Read the full story here:

2 senior PMs at Morgan Stanley’s $665 billion investment-management business share their contrarian outlooks on the election, the stock market, and a vaccine — and break down how they are readying portfolios in advance


Stock pick central

Seeking experts who are willing to name names? Look no further:


As we enter the homestretch of the 2020 presidential campaigns, listen in on Tuesday, September 29, at 1 p.m. ET for a live conversation with Business Insider’s politics team.

Topics covered will include: What to expect at the much-anticipated first presidential debate, the inner workings of the Trump and Biden campaigns, and the expected battle over the election results after the November 3 vote.

Register here.

Courtesy of Tina Sfondeles; Lawrence Jackson Photography; Courtesy of Darren Samuelsohn; Samantha Lee/Business Insider


Chart of the week

The Leuthold Group

The yield on a traditional 60/40 portfolio is now one-third its historical, 120-year norm, while stocks are trading at elevated multiples. In fact, as the chart above shows, the return is the lowest in history.

That’s led at least one Wall Street investment chief to advise against owning stocks.

“Those with true multi-generational wealth should probably have little or no exposure to a market trading at nearly 30x Normalized EPS,” said Doug Ramsey of The Leuthold Group.

Click here for more details


Quote of the week

“We were already in the middle innings of this digital transformation, and COVID-19 has brought forward a lot of demand.”

Paul Lambert — the portfolio manager of the $88.5 million Tocqueville Opportunity Fund, which returned 45% to investors last year — setting up his five top stock picks right now

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