Salient to Investors:
Sarah Ketterer at at Causeway Capital Mgmt said:
- Buying energy stocks very incrementally as oil prices eventually reach a floor and rise again but no idea when. Looks for companies with tremendous financial strength that can continue to pay dividends. Smart companies will use their balance sheet strength to buy distressed company assets.
- Do not be passive and just buy the S&P 500 or a world index in an ETF because markets are fully priced and the largest weighted stocks are the most fully priced.
- Active management fees pay to identify stocks left behind and avoid those that won’t blow up the portfolio.
- Owns some Russian stocks but not aggressively. If crude oil stays at current prices or slightly higher, there will be further economic strains in Russia over the next several quarters.
- Underweight US-listed stocks in global funds at 45 percent versus the almost 60 percent benchmark. Some of the best-managed oil and gas companies are US-domiciled.
- Outside the US there are few tech stocks and no managed care. Some of the best opportunities in financials are abroad.
- Consumer staples, utilities and health care globally are overpriced so it will be hard for them to meet expectations.
- Likes industrial stocks in Europe that have fallen because of concerns about growth in China and Europe because they will end up outlasting their competitors, taking market share and becoming even more efficient. If businesses are doing their job and constantly evolving they can succeed even in a stagnant environment.
- Investors worst mistake is short-term thinking, by selling at just the wrong time.
Read the full article at http://www.bloomberg.com/news/2014-12-31/dividend-stocks-could-be-dangerous-in-2015-ketterer-says.html
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