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More inflation, volatility in managers’ crystal ball
Seventy percent of institutional money managers surveyed by Northern Trust Global Advisors believe inflation will increase over the next six months, and 62% believe market volatility will increase over the same time period.
Also, 26% of the managers on NTGA’s manager-of-managers platform increased their exposure to commodities in the first quarter.
“Global events during the first quarter of 2011 have given our managers a lot to digest in a very short amount of time,” Chris Vella, NTGA global director of research, said in a news release. “With renewed unrest in the Middle East, it makes sense that managers have become increasingly concerned about the impact that a spike in oil prices will have on economic growth. Likewise, as general concerns around inflationary pressures persist, we would expect some of our managers to increase their exposure to commodities as a means to hedging out some of that risk.”
The survey also revealed:
• 58% believe the S&P 500 is undervalued;
• 66% believe Japanese equities are undervalued;
• 36% were risk averse;
• 43% believe emerging markets are undervalued; and
• technology, energy, industrials, emerging markets and health care were believed to be the top five most attractive markets, respectively.
The survey of 88 managers was conducted in mid-March. Mr. Vella could not be reached by press time for further comment.
S&P 500 is undervalued... Any good dividend paying S&P 500 funds that pay while you wait?
Japanese equities (could be a value trap...needs a growth catalyst): I own these: OAKIX= Oakmark International (30% exposure to Japan) MAJFOX = Matthews Japan PRJFX = TR Price Japan
Emerging markets(need to watch closely...big runs up and down): Own these: TREMX (T Rowe Price Int:Em Euro)...Russia,Turkey E. Europe will benefit...this fund is out of favor right now VWO = Vanguard Emerging ETF...better choice to VEIEX...no transaction fee with Vanguard Brokerage Acct. WAEMX = Wasatch Emerging Small Cap...nice alpha recently PRASX = TR Price New Asia...401k offering
Technology: Smart Phone has opened the door to the smart grid (Electric power(Energy)+ IT) VOX = Vanguard Telecom PRMTX = TR Price Media & Telecom...Long term hold...long term leader PRGTX = TR Price Gloal Tech MATFX = Matthews Asian Tech
Energy: (its impact on inflation/recession is a concern) Alternate Energy has a opportunity to be a opportunity area such as;
(Lithium Ion Tech) 1. Power Storage for Vehicles = Electric Storage, Vehicles, Electric Producers 2. Power Storage for the Grid
I own: VDE= Vanguard Energy ETF...VGENX replacement GASFX = FBR Gas Utility...Dividend paying distribution & Infrastructure Companies
Industrials: (I need suggestions here) VIS = Vanguard Industrials ETF
Health care: PRHSX = TR Price Health Sciences VHT = Vanguard Health Care...ETF replacement for VGHCX FPHAX = (Fidelity Sel Pharm) BUFTX (Buffalo:Sci & Tech)...nice combination of Tech and healthcare
Income Choices( Not US teasuries but): High Yield Corporate Corporate Bonds Selective Muni Funds Corporate) Inflation Protection verses TIPs Emerging Bonds
Countries that seem worth researching: Canada Australia New Zealand Mexico Brazil Norway,Germany,UK,France Russia Turkey Japan, Korea, Taiwan
Get paid (dividend) while you wait for these to come into favor: Homebuilders & (REITS) Small Banks Large Banks Nuclear Power
Comments
Seventy percent of institutional money managers surveyed by Northern Trust Global Advisors believe inflation will increase over the next six months, and 62% believe market volatility will increase over the same time period.
Also, 26% of the managers on NTGA’s manager-of-managers platform increased their exposure to commodities in the first quarter.
“Global events during the first quarter of 2011 have given our managers a lot to digest in a very short amount of time,” Chris Vella, NTGA global director of research, said in a news release. “With renewed unrest in the Middle East, it makes sense that managers have become increasingly concerned about the impact that a spike in oil prices will have on economic growth. Likewise, as general concerns around inflationary pressures persist, we would expect some of our managers to increase their exposure to commodities as a means to hedging out some of that risk.”
The survey also revealed:
• 58% believe the S&P 500 is undervalued;
• 66% believe Japanese equities are undervalued;
• 36% were risk averse;
• 43% believe emerging markets are undervalued; and
• technology, energy, industrials, emerging markets and health care were believed to be the top five most attractive markets, respectively.
The survey of 88 managers was conducted in mid-March. Mr. Vella could not be reached by press time for further comment.
Read more: http://www.pionline.com/article/20110413/DAILYREG/110419967#ixzz1JYpSffCz
S&P 500 is undervalued...
Any good dividend paying S&P 500 funds that pay while you wait?
Japanese equities (could be a value trap...needs a growth catalyst):
I own these:
OAKIX= Oakmark International (30% exposure to Japan)
MAJFOX = Matthews Japan
PRJFX = TR Price Japan
Emerging markets(need to watch closely...big runs up and down):
Own these:
TREMX (T Rowe Price Int:Em Euro)...Russia,Turkey E. Europe will benefit...this fund is out of favor right now
VWO = Vanguard Emerging ETF...better choice to VEIEX...no transaction fee with Vanguard Brokerage Acct.
WAEMX = Wasatch Emerging Small Cap...nice alpha recently
PRASX = TR Price New Asia...401k offering
Technology:
Smart Phone has opened the door to the smart grid (Electric power(Energy)+ IT)
VOX = Vanguard Telecom
PRMTX = TR Price Media & Telecom...Long term hold...long term leader
PRGTX = TR Price Gloal Tech
MATFX = Matthews Asian Tech
Energy: (its impact on inflation/recession is a concern)
Alternate Energy has a opportunity to be a opportunity area such as;
(Lithium Ion Tech)
1. Power Storage for Vehicles = Electric Storage, Vehicles, Electric Producers
2. Power Storage for the Grid
(NG Fueling stations)
1. Fleet Vehicles (Trucks, Buses, etc.)
I own:
VDE= Vanguard Energy ETF...VGENX replacement
GASFX = FBR Gas Utility...Dividend paying distribution & Infrastructure Companies
Industrials: (I need suggestions here)
VIS = Vanguard Industrials ETF
Health care:
PRHSX = TR Price Health Sciences
VHT = Vanguard Health Care...ETF replacement for VGHCX
FPHAX = (Fidelity Sel Pharm)
BUFTX (Buffalo:Sci & Tech)...nice combination of Tech and healthcare
Income Choices( Not US teasuries but):
High Yield Corporate
Corporate Bonds
Selective Muni Funds
Corporate) Inflation Protection verses TIPs
Emerging Bonds
Countries that seem worth researching:
Canada
Australia
New Zealand
Mexico
Brazil
Norway,Germany,UK,France
Russia
Turkey
Japan, Korea, Taiwan
Get paid (dividend) while you wait for these to come into favor:
Homebuilders & (REITS)
Small Banks
Large Banks
Nuclear Power
Any thought appreciated,
bee