67 WALL STREET, New York - August 23, 2012 - The Wall Street Transcript has just published its Investing Strategies Report. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Investing in Emerging Markets - Investing in China - Natural Resources - Emerging Middle Class
Companies include: YPF S.A. (YPF), Lennar Corp. (LEN), Pulte Homes Inc. (PHM), The Home Depot, Inc. (HD)
In the following excerpt from the Investing Strategies Report, an experienced asset manager discusses the outlook for investors.
TWST: What are your sage words of advice?
Mr. Colyer: Whether these are sage words or not, I always advise people never to lose sight of common sense. Generally speaking, and over time, through depressions, recessions and wars, if you can gather the courage to enter markets that appear to have extreme value, you will be well rewarded. If you can shed your fears, the real values are in the equity markets that are selling at near-historic low valuations. As money has been pulled out of the equity market, what's left behind are exceptional values.
We're now based out in housing in the United States, so if you can afford it, go buy some homes. Most people don't want to manage individual houses, but they can buy equities that participate in the housing industry, whether it's Lennar Homes (LEN) or Pulte (PHM) or construction-related companies like Home Depot (HD). Common sense will tell you that housing will come back, especially if we're offering mortgage money at the lowest rate in history.
We also see a lot of opportunity in the energy market. I think there is opportunity everywhere. The problem is getting people to overcome their natural aversion and put money to work where there has always been value.
TWST: What would you like to point out that you believe differentiates Advisors Asset Management from its peers and competitors?
Mr. Colyer: We're experts in fixed income, and I believe that over the next 20 or 30 years this expertise will be very significant to our clients and prospective clients. Since 1982, the United States has been in a long period of disinflation and interest rate reductions. A 10-year Treasury in 1982 was 15% and a 10-year today is 1.4%, at or close to an all-time low. Most advisers today are not schooled in how to position portfolios to fight rising interest rates and falling bond prices. So I think our ability to help them successfully negotiate a rising interest rate market without damage to their portfolios will become increasingly valuable.
The other thing that differentiates AAM is that we have expertise in other asset classes that generate rising streams of income over time. Once again, we're income-centric. Obviously, we sell the assets that generate income, but I think the most important thing is the value that you add in showing people how to successfully use them in their practice.
For more from 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 and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.