Bill Miller & Ed Hyman on Japan, Apple & Economy [PREVIEW]

Below is a preview of part two of WealthTrack‘s exclusive TV interview with Ed Hyman & Bill Miller.

Last week on Consuelo Mack WealthTrack, Ed Hyman and Bill Miller shared their top investment forecasts and strategies for 2014. Watch the full episode:

 

Consuelo Mack WealthTrack “Legendary Investors’ Predictions, Part 2” — premieres nationwide beginning Friday, January 17 at 7:30 p.m. on public television (check local listings**) and on wealthtrack.comExclusive TV interview preview:

“It wasn’t planned this way, but both Ed Hyman and Bill Miller think this year’s biggest surprise could be a better than expected economy and stronger than anticipated stock market,” says Consuelo Mack.

Ed Hyman:

“I think the biggest surprise is you have another big move in the stock market…”

Bill Miller:

“Well, for a contrarian like myself, the biggest surprise will be the bullish consensus will be right and that the consensus for about a 10 percent move in the stock market. But I think the surprise would be if the stock market could be up 30 percent again next year instead of just eight to 10 in line with earnings, so more multiple expansion.”

Ed Hyman:

“…if you start to probe the glass half full side of the conversation, you can get some pretty optimistic views coming out from the energy play, the technology play. These things could come into play and give you a much better stock market and a very decent economy, maybe even…see, I say decent economy. I can’t even get myself into thinking it’ll be a good economy, but maybe it will be a good economy at some point.”

Consuelo Mack says, “Both Hyman and Bill Miller also shared investment ideas. Last year on WealthTrack, Miller called Apple Inc. (NASDAQ:AAPL), then trading at around $400 a share, the biggest no-brainer he had ever seen. This year, he says it is the second or third greatest no-brainer ever.

Bill Miller on Apple:

“It’s the most profitable company in the world. It’s got the biggest buyback in the history of the world. It trades at a huge discount to the market with returns on equity and capital, which are among the best in the overall market. It’s got an impregnable balance sheet. It’s got a dividend yield that’s pushing three percent, and they’ll raise the dividend significantly, we think, in the spring or early summer, so it’s one of these things where it’s like, what’s not to like with this thing if you actually care about valuation? Now, if what you care about is the next story and the next item on the tape, and are they going to beat the quarter; actually, the answer is, yes, they’re probably going to beat the quarter.”

Consuelo Mack notes, “Hyman said last year investors who owned the U.S. stock market got a free pass, just about everything went up, largely because the Federal Reserve was pumping money into the economy. This year, he says there’s another free pass for investors. This time it’s Japan, because the Bank of Japan is doing the same thing.”

Ed Hyman on Japan and the Bank of Japan:

“They’re going to increase their balance sheet by a trillion dollars, about what we did last year…The Bank of Japan, but their stock market is a quarter the size of the U.S., so (laughs) they’re really putting it on, and the market’s acting pretty well, and the yen is weakening. Like today, it was weaker, which means it’s more attractive to buy their goods, so that looks like a good shot.”

Consuelo Mack: “So from an investment point of view, I mean, should I be buying a Japan fund?”

Ed Hyman: “Yes.”

Consuelo Mack: “Or an ETF?”

Ed Hyman: “And you have to short the yen and long the stock market.”

**Local market airdates and more info on Consuelo Mack WealthTrack are below.

For interviews and all other requests, please contact me: padilla@wnet.org or 212.560.8824.

Series Press Kit:

http://www.wliw.org/21pressroom/c/consuelo-mack-wealthtrack/530

http://www.aptonline.org/catalog.nsf/vLinkTitle/CONSUELO+MACK+WEALTHTRACK+X