Gathered in London and New York for the Reuters 2011 Investment Outlook Summit, some of the world's top money managers and investment commentators shared their investment strategies and thoughts on the market-driving issues of the day.
Below are some highlights of what they said:
JOHN TAYLOR, chairman and CIO, FX Concepts
"I think the people who are hoping that the dollar is going down now are smoking dope as we used to say in the '70s. They are just hoping that, in fact, things are going to be good and Obama is going to turn everything around."
"The bottom is not here. I mean a temporary bottom is here maybe ... Well, I'm not sure of that either, but we do some voodoo stuff. The market is full of voodoo, you know, all sorts of weird."
BOB DOLL, chief equity strategist, BlackRock Inc
"You are already seeing some people move their economic forecast up for next year and they are citing the tax bill. But even before that, the real economy in the last couple of months is slowly, but surely, getting better, and this is some icing on that fairly newly-baked cake."
"It is so easy for all of us who live here in the U.S. to use 'U.S. stock market' and 'U.S. economy' in the same sentence. I would argue they are increasingly unrelated."
DAVID EINHORN, CEO, Greenlight Capital
"As an investor I know that I am spending more time than I used to thinking about what's going on in Washington, D.C. And I think that's true for many of my peers."
WILLIAM DE VAULX, portfolio manager and partner, International Value Advisers
"To me the real witchcraft is not gold, it's Treasuries. I mean the Treasury, to quote Jim Grant, is an 'IOU nothing.' A European bond, it's an 'IOU nothing,' and I am not sure who owes me. Is it the Greeks or the Germans? So that to me is real witchcraft. You cannot print gold the way you print them."
MARTIN SASS, founder, M.D. Sass
"The more important driver for equities is corporate profits and cash flow and balance sheet strength. So, when you look at the corporate profit recovery we're in a V-shaped recovery. We're not in a sluggish recovery, we're in a 'V.'"
"Longer-term bonds I think are certificates of confiscation, particularly Treasury bonds."
JIM O'NEILL, chairman, Goldman Sachs Asset Management
"We need a whole new mindset (in Europe) in many ways, particularly following the end of Claude Trichet next year, who yet again demonstrated a degree of wisdom and market awareness that is generally lacking throughout many of the European policymakers."
GAIL FOSLER, president, the GailFosler Group LLC
"This is sort of like the Greeks looking at the gods, and in a sense the gods must be crazy. You know, lots of our institutions are just not behaving in ways that people understand."
"The magnitudes of the bailout, the magnitudes of the TARP, the magnitudes of the stimulus, the level of the public debt. I mean, all of these things are almost as if they are on steroids. It is as if the individual is a Lilliputian, and there are these great Gullivers that are kind of operating in the economic universe."
SHAWN KRAVETZ, president and founder, Esplanade Capital
Retail "stocks aren't on sale. So the merchandise is; the stocks aren't. And it's not tautological to suggest that, ergo, the stocks must fall 30 percent -- I'm not saying that, nor that things are going to get better on the store shelves. But there has to be a little bit of give and take."
(For summit blog: blogs.reuters.com/summits/)
(Compiled by Alina Selyukh)