No one knows for sure what 2011 will bring in the markets. Will the sun continue to shine on stocks? Are the bond markets in for a stormy year? Is gold a bubble or destined to set a few more price records?
No one knows the answer to all these questions with complete certainty, but some people have a pretty educated guess.
In mid-January, a group of investment advisors joined us for a roundtable discussion of the Investing Outlook 2011. We covered a lot of topics discussing strange market trends, global hotspots, oil and gas, technology, healthcare and the attraction of dividend stocks, among many other topics.
Video of Part One and Part Two of our discussion is below, along with a bit more detail on some of the topics discussed. First, an introduction to the panelists:
Kim Arthur, Founding Partner, Main Management
Main is a San Francisco-based financial advisor, with a firm focus on smart asset allocation using Exchange Traded Funds and $450 million in assets under management. Before founding the firm in 2002, Arthur had a long career in institutional and international sales, and from 2000-2002 served on the Investment Policy Committee and the Executive Management Committee of Banc of America Securities. In 2009, Institutional Investor Magazine named him a “Rising Star” of Foundations and Endowments.
Arno Mayer, President, Financial Trust Asset Management
For over twelve years, Financial Trust Asset Management Chartered has offered clients quantitative equity portfolio management services. With approximately $50 million in assets under management, the Boca Raton, Florida firm offers 13 unique equity and fixed income quantitative strategies, including its Asia ValueMomentum strategy, which was was ranked #1 in performance by Barron’s Magazine for the 3rd quarter of 2010.
Paul Rabbitt, President, Rabbitt Analytics
Previously Senior Portfolio Strategist at Oppenheimer & Co., Inc., Rabbitt founded his own firm in 1998, where he continues to use computer models to forecast which industries, sectors and stocks are most likely to outperform the market. Based in LaQuinta, California, Rabbitt travels around the world working with U.S, European and Middle Eastern institutions. His high-performing “Q” Stock Ranking system, is a twelve-factor stock risk/return model that has ranked 2,500 stocks every trading day since 1992 including factors like earnings surprises/revisions, earnings consistency, earnings acceleration, valuation, relative strength, and money flow, among others.
Lou Stanasolovich, CEO and Founder, Legend Financial Advisors
Stanasolovich has been recognized by numerous publications, including Barron’s and Worth Magazine, as one of the leading financial advisors in the country. His Pittsburgh-based firm, founded in 1993, is a fee-only advisor offering a full range of financial advice on all aspects of wealth management, including investing.
Christian Wagner, CEO and Chief Investment Officer, Longview Capital Management
Based in Delaware and New Jersey, Longview manages $175 million in assets, using a dynamic investment process that measures risk and reward in different sectors and individual companies in markets around the world. The firm uses ETFs as the building blocks of its portfolio. Before founding the firm, Wagner was Senior Vice President and the Director of Investment Services for Commerce Capital Markets, Inc. and Commerce Wealth Advisors.
The conversation is broken out into two segments.
Some topics covered in part one (video below):
- The continuing appeal of large cap, dividend stocks.
- Technology, healthcare, energy as attractive sectors for a variety of reasons.
- Is a downturn coming in the second half of the year?
- Looking for value among dividend payers.
- Smart global investing — the case for Chile and Canada.
- The challenge of investing based on the classic measures of quality — when companies with the poorest consistency of earning out perform those with good consistency and other strange twists of the market today.
- The tail wind behind companies that export to the Far East.
In Part Two (video below) the conversation continues with a discussion of :
- Volatility and climbing “the wall of worry.”
- China, India and Greater Asia.
- Is the market expensive or not? Comparing large, mid- and small-cap stocks.
- Mining and metals.
- Things Worth Worrying About in 2011.
photo: James Lee