Posts Tagged ‘euro debt crisis’

Picking Stocks, Stock-by-Stock

March 7, 2012 Comments off

Who doesn’t love a bargain? Scoring something sought-after at a discount can be as thrilling for shoppers on Main Street as deal-hunters on Wall Street. Ferreting out finds takes time, though, and not everyone has the patience—or the resources—to do that legwork.  But Katrina Dudley, portfolio manager with Mutual Series® , is a savvy stock shopper with ample amounts of both. Read on for a taste of her stock-picking approach as inspired by the Mutual Series’ guiding principle:  “buy a dollar’s worth of assets at a discount.”         

  • Macro considerations are important, but they don’t change our stock-by-stock selection process
  • Volatility is here to stay, but it can create opportunity 
  •  We’re looking at the company-level impact of macro influences like eurozone austerity
  • Many European companies are readjusting their cost base, becoming more competitive Read more…

Dipping a Toe Back Into the Market

March 2, 2012 Comments off

Many investors were leery about diving into the market last year, and who can blame them given global debt debacles, job and housing concerns, and a shaky growth outlook. While the market still faces these crosscurrents, the S&P 500’s best January performance in more than a decade 1 and the recent reprieve in a key measure of market volatility are providing  hints that gun-shy investors might be dipping a toe back in.

Easier said than done for some. After the rollercoaster that was 2011, trying to explain why now seems like a good time to venture back in still sounds a little crazy. But for those who are looking for some perspective, you’ve come to the right place. Read on for why Ed Jamieson, president/CIO of Franklin Equity Group®, Peter Langerman, president/CEO of Mutual Series®, Gary Motyl, president/CIO of Templeton Global Equity Group, and Mark Mobius, executive chairman of Templeton Emerging Markets Group, all think it might be time for investors to consider taking the plunge. In brief:

Gary Motyl: “We do expect the global GDP environment to remain challenging—looking for slower global GDP growth but still growth.”

Ed Jamieson: “The market appears more relaxed about world events than one might imagine.”

Peter Langerman: “If you look at one of the commonly referenced measures of volatility, the Chicago Board Options Exchange Market Volatility Index, or the VIX, we are actually at a level which isn’t that far above where we were all the way back in 2007.”

Mark Mobius:  “I don’t believe China’s economy is going to experience a hard landing. I expect the China plane will keep on flying.” Read more…

Greek Crisis: This Too Shall Pass

February 23, 2012 Comments off

Jerry Palmieri

Jerry Palmieri, Vice President and Sr. Portfolio Manager for Franklin Equity Group, doesn’t worry too much about whether the Greek drama dominating daily headlines will turn into global market tragedy. A veteran of Franklin Templeton since 1965, he’s survived to tell the tale after more than four decades of market ups and downs. His wizened view summarized:

  • Market ups and downs are to be expected.
  • U.S. market, economy will survive the Greek debt crisis. ”Things will work out.”
  • Market timing not the ticket to long-term investing success. 

Ups and Downs Are To Be Expected

On “Black Monday,” October 19, 1987, the Dow Jones Industrial Average plunged more than 508 points, or roughly 22%.1 Following the market plunge, Palmieri, a longtime fund manager, earned the respect of his peers for his calm demeanor and diligence during a time few market veterans could ever forget. During one of the worst crashes in the history of the market, Palmieri maintained his resolve that despite the crash, the equity market was still the place for investors to be over the long-term.

Read more…

Chua Spans the Eurozone and Beyond for Value

February 21, 2012 Comments off

Alan Chua

Value, like beauty, is in the eye of the beholder.  One man’s splurge is another man’s thrift. So how do you define value? And where do you find it? Alan Chua, portfolio manager with the Templeton Global Equity Group and known value-hunter, has been spanning the globe to uncover it. You might be surprised to learn that the much-maligned eurozone, embroiled in an ongoing debt crisis, also happens to be a place he feels attractive valuations are ripe for the plucking. Top takeaways:

  • Chua sees “attractive opportunities” in the eurozone, based on valuations
  • Sectors to watch: pharmaceuticals and technology
  • Opportunities in Asia
  • Chua remains cautious on the U.S., as valuations there are not as cheap as Europe, but there are promising signs Read more…