James48843
Well-known member
USAA posted some of their experts opinions on the state of the market:
https://www.usaa.com/inet/ent_blogs...y=newsroom&postkey=our_experts_read_the_rally
USAA serves a great number of Military active, reserve, and retired members.
Here is a sample. You can click on the link above for all their opinions.
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Our Experts Read the Rally
Posted on Sep 11, 2009 | Category: Latest News
USAA equity fund sub-advisors share their views on investing in the recovery.
After a devastating 18 months through March 9, the U.S. stock market has soared with the temperature, as investors grew increasingly confident about the prospects for economic recovery. In early August, we surveyed USAA's equity fund sub-advisors to get their views on investing in the recovery.
A Long, Hard Slog
Mike Schroer, Renaissance, co-subadvisor of USAA Growth Fund :
"We think recovery will take hold, but high unemployment and consumer retrenchment will make it a long, hard slog, not a straight line up. Stocks are no longer ridiculously cheap, but they're not expensive compared to no-risk alternatives. Profits will improve, especially for companies that can generate top-line revenue growth. Those with a combination of better earnings growth than the market and lower valuations are poised to outperform. The lingering effects of the crisis will probably mean that investors put a premium on companies with stronger balance sheets and higher credit ratings."
Low-Quality Rally Creates High-Quality Values
Donna Murphy, GMO, co-subadvisor of USAA Income Stock Fund :
"We did not — and do not — believe that the fundamentals supported such a large move off the March 9 lows. However, this low-quality nature of the rally gave us the opportunity to invest in some very high-quality companies with plentiful cash, high profit margins and low valuations. Holding these more defensive stocks might expose us to some temporary underperformance if risky assets continue their run, but we're happy to lean against the market's short-term emotions in exchange for accruing long-term value. "
Mispricing Still Exists
Scott Hazen, UBS, co-subadvisor of USAA Growth and Income Fund :
"We're cautiously optimistic about the economy and continue to see areas of opportunity, but this remains an environment that demands active management. After having taken on more risk ahead of the market bottom in March, we've been reducing risk as the rally has extended, shifting assets from consumer discretionary back to consumer staples. We believe there is still mispricing in the market — some sectors appear expensive while others are cheap — and we're working to take advantage of it."
(more at https://www.usaa.com/inet/ent_blogs...y=newsroom&postkey=our_experts_read_the_rally )
https://www.usaa.com/inet/ent_blogs...y=newsroom&postkey=our_experts_read_the_rally
USAA serves a great number of Military active, reserve, and retired members.
Here is a sample. You can click on the link above for all their opinions.
------------------
Our Experts Read the Rally
Posted on Sep 11, 2009 | Category: Latest News
USAA equity fund sub-advisors share their views on investing in the recovery.
After a devastating 18 months through March 9, the U.S. stock market has soared with the temperature, as investors grew increasingly confident about the prospects for economic recovery. In early August, we surveyed USAA's equity fund sub-advisors to get their views on investing in the recovery.
A Long, Hard Slog
Mike Schroer, Renaissance, co-subadvisor of USAA Growth Fund :
"We think recovery will take hold, but high unemployment and consumer retrenchment will make it a long, hard slog, not a straight line up. Stocks are no longer ridiculously cheap, but they're not expensive compared to no-risk alternatives. Profits will improve, especially for companies that can generate top-line revenue growth. Those with a combination of better earnings growth than the market and lower valuations are poised to outperform. The lingering effects of the crisis will probably mean that investors put a premium on companies with stronger balance sheets and higher credit ratings."
Low-Quality Rally Creates High-Quality Values
Donna Murphy, GMO, co-subadvisor of USAA Income Stock Fund :
"We did not — and do not — believe that the fundamentals supported such a large move off the March 9 lows. However, this low-quality nature of the rally gave us the opportunity to invest in some very high-quality companies with plentiful cash, high profit margins and low valuations. Holding these more defensive stocks might expose us to some temporary underperformance if risky assets continue their run, but we're happy to lean against the market's short-term emotions in exchange for accruing long-term value. "
Mispricing Still Exists
Scott Hazen, UBS, co-subadvisor of USAA Growth and Income Fund :
"We're cautiously optimistic about the economy and continue to see areas of opportunity, but this remains an environment that demands active management. After having taken on more risk ahead of the market bottom in March, we've been reducing risk as the rally has extended, shifting assets from consumer discretionary back to consumer staples. We believe there is still mispricing in the market — some sectors appear expensive while others are cheap — and we're working to take advantage of it."
(more at https://www.usaa.com/inet/ent_blogs...y=newsroom&postkey=our_experts_read_the_rally )
