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Legg Mason's Miller: Stocks Look Cheap

Bill Miller buys Computer Associates, Verisign, Dynegy, others in 2Q.

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Bill Miller isn't about to call a market bottom. In fact, the veteran manager of Legg Mason Value Trust (LMVTX) and Legg Mason Opportunity Trust (LMOPX) expressly declines to do so in his latest shareholder letters for the funds, released today. He has, however, been finding a few bargains, and (unlike certain other notable managers) is convinced that stocks in general are attractively valued.

Miller, who's best known for beating the S&P 500 index for 11 straight years at Legg Mason Value Trust, but is lagging the index in 2002, is quick to say that he " . . . [has] no idea, nor does anyone else, when and at what level the decline will end." However, he does note a few positive signs, including a growing economy, rising earnings, low unemployment, strong consumer spending and productivity growth, and the liquidity supplied by the Fed.

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Christopher Traulsen does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.