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Forbes: Money Managers Still Bullish on 2014

By    |   Wednesday, 05 February 2014 12:35 PM

Forbes found a group of standout money managers who are bullish on 2014 despite the January sell-off and volatility. Their collective viewpoint about the state of the economy is still one of optimism.

Dan Chung, who is at the helm of $19 billion in investments as CEO and chief investment officer at Fred Alger Management, counts technology (his pick: Apple) and healthcare (his pick: HCA Holdings) among his positive big themes.

Kate Warne, an investment strategist at Edward Jones, recommends investors be more selective and look for value in 2014. Her picks for neglected value stocks include EMC Corp. and Philip Morris, and she is also looking for improved performance from Abbott Labs and Devon Energy.

Forbes said Cliff Corso, fixed-income manager at Cutwater Asset Management, expects pension and insurance companies may cut back on riskier stocks in favor of long maturity bonds. According to Corso, a smart way to play that likelihood is for investors to focus on long date, high quality municipal bonds.

“Even though rates may increase, municipal bonds are currently inexpensive vs. history,” Forbes noted. “In fact, long maturity municipals are one of the few laggards in the rally in bond spreads in 2013.”

At Oppenheimer Funds, George Evans, chief investment officer of equities, favors growth stories for 2014. Among his picks are software maker SAP, spirits distributor Diageo and luxury goods purveyor LMVH.

Forbes said Matthew Page and Ian Mortimer, co-managers of the Guinness Atkinson Global Innovators Fund, are focused on companies they believe can offer sustained, high return on capital while also being leaders in innovation. Some of the companies they recommend are Qualcomm, Lenovo and Gilead.

Bloomberg reported its new survey of 21 market analysts yielded an average prediction for an 11 percent gain in the S&P 500 for 2014.

Strategists from Goldman Sachs, AMP Capital Investors and JP Morgan Chase are among those advising their clients to stay put after January losses, Bloomberg said.

“We didn't expect the U.S. would be this weak,” Kathy Matsui, chief Japan strategist for Goldman Sachs in Tokyo, wrote in an e-mail. “Since we do not see sufficient reason to change our fundamental earnings outlook and stock prices have fallen, the market still appears attractive to us.”

“We should keep our calm,” Karim Bertoni, a strategist at de Pury Pictet Turrettini & Cie, which manages about $3.3 billion, told Bloomberg. “A 10 percent decline wouldn't be surprising. That's why so far I think we are more in a classic correction than anything else.”

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Forbes found a group of standout money managers who are bullish on 2014 despite the January sell-off and volatility.
Wednesday, 05 February 2014 12:35 PM
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