Known as the dean of contrarian investing, David Dreman is staying true to his against-the-tide approach, telling CNBC that he thinks stocks and real estate — two of the areas hit hardest in the past couple years — are the place to be moving forward. (Thanks goes to Value Investing Pro for posting the video.)
Dreman says he thinks the stock market will be volatile but overall be “much higher” over the next three to five years. Part of the reason: inflation. He says that a worldwide money-printing binge will likely lead to inflation rates as high as the 12% figure the U.S. saw from 1977-1981. Stocks and real estate both handle inflation quite well, he says. Dreman also gives his grade on the Obama administration thus far, reveals which banks he thinks are “survivors”, and talks about the areas of the market he’s particularly high on.