James Berman

As a contrarian investor, I'm used to putting money where others wouldn't -- and holding off in places where others would.

But there could be no greater divide in sentiment than the purchase I made on Friday while the rest of the world was watching Facebook (FB). I bought a...

Goldman Sachs referring to clients as muppets? Like Captain Renault in Casablanca, I'm once again shocked.

Goldman's alleged disdain for their clients points to a far greater problem at the core of the financial regulatory landscape, one that should strike fear into the hearts of would-be-muppets everywhere.

Many people --...

Only a few years ago, investors heralded the potential in emerging markets. The sputtering of world growth has silenced that chatter. The miraculous possibilities of Asia and Latin America lie forsaken.

Meanwhile, none of that global potential has disappeared. The clock has been reset, opportunities deferred -- but the thesis...

Today's market confronts multiple macro pressures: a euro debt crisis, a feeble global economy and social unrest in many parts of the world. But as a value investor, I believe contrarianism works. I'm often buying what others are selling and selling what others are buying. Going against the craven herd...

To the left, a financial crisis leads to drumbeats for rebellion. Protesters march on courthouses to protest mortgage foreclosures. Bankers are decried as Satan. The government arrests thousands, leading to confrontations and casualties. A protest movement against creditors is born.

To the right, a large insurrection rejects a call for...

With IMF leader Dominique Strauss-Kahn under arrest for sexual assault, many have predicted the Euro's demise. After all, DSK is a founding father of the common currency and the architect of bailouts that have propped up the euro zone. Whether or not the euro follows his steep downward arc, Greek...

Inflation is an insidious threat. Economic predictions are said to make weather forecasts look respectable -- but inflation is one you can count on.

The normal course of things is that money loses its worth over time -- the sordid result of government overspending -- and the endgame is a...

On March 11, 2009, we issued a call for value that was roundly derided at the time (see our letter and the comments it received here). The rest is market history. As those who sold at the bottom sheepishly return to the market, quick to rationalize their homecoming...

Complacency is returning to markets. Risk aversion is evaporating. Recovery is in the air. Even the animal spirits are returning, with M&A activity reborn and speculation back in vogue.

From a contrarian perspective, these signs are worrisome. The newly positive sentiment on stocks is bringing dollars back into the market...

All that glitters seems to be gold. With the metal at $1,371 per ounce, up from $800, the two-year return on bullion is approximately 70%. In 2008, comparatively late to the long-running gold party, we purchased the GDX (gold mining stocks exchange traded fund) across client accounts in cautiously small...

A United States Treasury Bond is now the most expensive, most dangerous investment asset in the world -- while blue chip equities, especially American and European Multinational stocks are as cheap as they've ever been.

One model of valuation is the so-called "Fed Model," historically used by Fed analysts to...

In just over a year, the Dow has recovered to 10,881, from 6,547. The biggest rally of our lifetimes has lifted markets nearly 70%. Paradoxically, now's time to be more cautious, while a year ago was the time for optimism. Why was optimism warranted when the world was falling apart?...

In ten mere months, the Dow has rallied 62%, from 6,547 to 10,610. The rally is nearly as dramatic as the decline that preceded it. Though the Dow has a long way to go to return to 14,000, the recovery in markets is the largest relative to its short duration...

The greatest monetary and fiscal stimulus in history has saved the world from deflation. Next stop: inflation.

The Fed's heroic success at making money "free" for the past year--with short-term interest rates near zero--has saved the planet from another Depression. The money supply has exploded; the steepened yield curve has...

The economy continues to worsen: GDP is contracting. Unemployment is at 8.5%. Housing still swoons despite the lowest mortgage rates in recorded history. The horrible realities of a brutal recession -- layoffs, shuttered storefronts, bankruptcies and liquidations--get worse by the day.

Why then would the stock...

The Dow is at 6,547, down 54% from its high of 14,164 back in October, 2007. This terrible bear market now exceeds the market losses of 2000-2002.

It may seem counter-intuitive to make the case for stock investment against such a backdrop, but so much value now resides in...

The Madoff (alleged) mega-scam is ruining lives worldwide. The tales of loss seem too widespread to be caused by one man. Yet, we know from history that it takes only one depraved or greedy sociopath to destroy millions. The individuals, widows and pensioners who lost their money deserve tremendous sympathy....

When Warren Buffett speaks (which is rare outside his annual Berkshire Hathaway shareholders meeting), people should listen. Among all the TV pundits, hedge fund traders, economists, journalists and cocktail party guests, not one has as good an investment record.

He may need no introduction, but Buffett is the most successful...

A few republican congressmen are $700 billion wise; several trillion foolish. Voting against the bailout was a sop to the worst brand of envious populism. They didn't know history and now are condemning us to repeat it. They must be hearing the theme to All in the Family in their...

People often ask themselves: "Why didn't I buy X back when ...?"

"X" could be a lot in Brooklyn or a Louisiana oil well --or a Warhol print or a Malibu beach house.

It could also be a share of IBM in 1994 when Big Blue was in the...