Bill Mill

Has Bill Miller Lost His Mind?

1/7/2013

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HBotsn? alilLsi id se H MM r i

By Chuck Saletta | More Articles December 17, 2007 | Comments (0)

Recs

30

R e c

Today's Market

T h i s

DOW S&P 500 NASD

13,384.29 1,461.89 3,098.81

-50.92 -4.58 -2.85

-0.38% -0.31% -0.09%

0

Bill Miller earned his stripes by beating the market for 15 consecutive years as lead manager of the Legg Mason Value Trust (FUND: LMVTX ) . That's a tremendous accomplishment, especially when you consider that over five of those years, even Warren Buffett fell behind Wall Street's benchmarks. As a result, when Miller speaks, investors listen. Reading Miller's recent market commentary, however, may leave you scratching your head a bit. That's particularly the case if you're not already a seasoned value investor. After all, we're suffering through one of the biggest credit crunches in decades. At the core of the problem is a slumping housing market and the two huge problems it brings with it: People can't use their homes as ATMs to support their spending. Home loans based on inflated values may very well turn out to be worthless. Yet Miller's comments include the following: "I think the new leadership will be U.S., large-cap, dollar-based, and grow to encompass what no one wants to own today, especially financials and consumer." And: "I think the greatest gains over the next five years will be made in those securities people are panicked about today. For specific names, consult the 52-week-low list." Is he off his rocker? Buy financial companies during a credit crunch? Look at consumer stocks when the easymoney spigots...