Top fund managers O. Mason Hawkins and G. Staley Cates say a rise in merger & acquisition activity has made it harder to find attractive value stocks. But they remain optimistic on equities for the long term.
While many are worrying about a bear market, contrarian guru David Dreman thinks the bull has a long ways to run — though not without some bumps along the way.
Charles Schwab’s Liz Ann Sonders thinks that the economy is improving following a weak first quarter, and thinks the bull market isn’t done.
Morningstar Fund Manager Of The Year Steven Romick isn’t finding a lot of bargains in the markets right now, but in a recent WealthTrack interview he did discuss some areas that he finds appealing.
Steven Romick, one of Morningstar’s fund managers of the year in 2013, has grown very bearish and has upped his cash position to about 40% of his portfolio.
Ed Perks, whose Franklin Income Fund is in the top 2% of funds in its class over the past five years and the top 4% over the past ten years, according to Morningstar, is continuing to find the strongest opportunities for income in the equity market. Perks tells WealthTrack’s Consuelo Mack that over the past few years, the fund’s allocation has flipped from about 65% fixed income/35% equities to close to 65% equities and 35% fixed income. He thinks rising rates aren’t necessarily a bad thing if they occur as part of a normalization process, and he sees large dividend payers as one area that is generally attractive, though he says his fund looks at investments from a bottom-up, investment-by-investment view. He’s particularly high on certain utilities with steady cash flows, and says his fund has found more opportunities in energy, materials, and tech stocks as it has increased its equity exposure. He thinks declining growth projections and the accompanying market volatility in emerging markets made for good opportunities in materials and energy stocks.