Time to Bottom Feed Across the Pond

The U.S. stock market is expensive and bond yields aren’t far from record lows. European and emerging market stocks, on the other hand, have approached stomach-turning status, says Jason Zweig of the Wall Street Journal. The European market has dropped by 12% while emerging markets have plummeted by 21.8%. Stabilized oil prices and a possible interest rate hike by the Fed has lifted investors’ outlook on these markets by a marginal 2% to 3%, but the fact remains that overseas stocks are cheap. In fact, according to data from MSCI, as of April 30th the average price-to-book value of European […]

The “Art of Successful Investing” with Zulauf, Black, Herro & Priest (Part I)

Last month, Barron’s published stock picks of eight leading investors who participated in its AOSI conference.  Below are several of the longer-term trends identified by these industry leaders. Felix Zulauf, president of the hedge fund Zulauf Asset Management, sees a bear market. “We are in a recovery rally in the early stages of a cyclical bear market,” he says. After possible upward bumps for the remainder of 2015, he continues, “I see a bear market around the world, including the U.S. . . . The S&P could decline to 1600.” He explains. “we are in a deflationary cycle,” while attributing much […]

Taking "Short-term Lumps" for Long-Term Value in Emerging Markets

The manager of the Oakmark International Fund, David Herro, believes it is a good time to invest in emerging markets. The fund had roughly one-quarter of its portfolio in emerging markets in the late 1990s and “benefited greatly” from that decision over the next decade, Herro says. Then, investors became interested in emerging market stocks and “by the end of the last decade, prices got stretched,” so the fund reduced its emerging market stocks to near zero. “Now we’re finally starting to see that come full circle again,” according to Herro. He points to both “good valuations” of companies and […]

Taking “Short-term Lumps” for Long-Term Value in Emerging Markets

The manager of the Oakmark International Fund, David Herro, believes it is a good time to invest in emerging markets. The fund had roughly one-quarter of its portfolio in emerging markets in the late 1990s and “benefited greatly” from that decision over the next decade, Herro says. Then, investors became interested in emerging market stocks and “by the end of the last decade, prices got stretched,” so the fund reduced its emerging market stocks to near zero. “Now we’re finally starting to see that come full circle again,” according to Herro. He points to both “good valuations” of companies and […]