67 WALL STREET, New York - January 3, 2014 - The Wall Street Transcript has just published its Investing Strategies Repor. This special feature contains expert industry commentary through in-depth interviews with highly experienced Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Small Cap Investing - Upside in Small-Cap Stocks - Contrarian Approach to Investing - Quality of Business - Investing in Tangible Assets - Value in Emerging Markets - Cash-Flow-Oriented Global Companies - Turnaround Situations in Small and Micro Caps
Companies include: Tangible Asset Rich Companies
In the following excerpt from the Investing Strategies Report, an experienced money manager discusses his outlook for investors:
TWST: What, then, are some of your favorite investment ideas right now?
Mr. Colyer: I think one of the challenges for us out there is how we can manage fixed income investments into a headwind. We've had a 30-year secular market, which began in 1982 in a very disinflationary time period, where interest rates dropped precipitously to record lows that we experienced in 2012. We think that secular market has changed, and so we have to learn now how to play defense. Part of the problem with that is, very few people who are in the business today have ever managed into a secular bear market for interest rates, for bonds and bond prices. So that's part of the challenge; we think about that a lot, we talk a lot about that, and we provide a lot of training insight into how to learn to play defense in the fixed income portfolios management area.
On the equity side, luckily we've been on the long and bullish side since the bottom of 2009, and now you are starting to hear comments about bubbles in the market, in the equity world. If the Fed changes its quantitative easing, its asset purchase program, if it starts to withdraw its asset purchases and brings that amount down or interest rates up from zero - if that occurs, will that kill the market? We don't think we are anywhere close to the end of the equity run. We think that the support that the Fed has provided has actually provided earnings, and those earnings back the equity prices and the advances in equity prices. We think we are still fairly early in a secular bull market for equities.
We were always taught never to fight the Fed, and we're certainly not going to start fighting the Fed now, so if the Fed is supportive with record supportive monetary policy, then that bodes well for risk assets, meaning equities, and those prices can really grind a lot higher from here. We don't see valuations as being stretched at all at this point in time. In fact, we think like Newton's law, which reads, "For every action, there is an equal and opposite reaction." Monetary policy is the easiest it's ever been in history for the longest duration it's ever been in history, so we believe that you will probably see a reaction in equity markets of the same magnitude, probably larger than most people believe and probably longer than most people believe...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.