To jump or to tiptoe, that is the question.
In a recent piece for the New York Times, Jeff Sommer looks at the issue of whether investors looking to deploy a large chunk of capital in the market are better off doing it all at once or bit by bit.
Marc Faber of the Gloom Boom & Doom Report thinks geopolitical issues will become more important for US markets, and says he thinks gold has bottomed.
Jason Trennart of Strategas Research Partners says there is no good alternative to stocks in today’s low-rate world, and he thinks it’ll remain that way until inflation really starts to kick in. Trennart tells WealthTrack’s Consuelo Mack that the Federal Reserve has pushed investors toward risk assets because of its low-interest-rate, quantitative easing policies. While the Fed’s bond-buying is winding down, he says other central banks — like Japan’s and Europe’s — are picking up the slack. How far the bull runs is largely contingent on how long inflation remains mild, allowing the easing to continue, he said. He thinks that will be the case for at least another year, and possibly two, because wage inflation hasn’t kicked in, global commodity price pressure is not major, and banks aren’t interested in significantly increasing the size of their loan portfolios. Trennart explains why he’s high on large-cap tech stocks and Japanese equities, and how to spot when broad-based inflation starts to pose a risk to stocks.
Top fund manager David Herro says he’s not letting macroeconomic events change his investment approach.
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.