Quarterly Perspectives

Here's the latest Quarterly Perspectives With Bob Turner video, in which the chairman and chief investment officer of Turner Investments notes that companies are using the ample cash reserves in their balance sheets to repurchase their shares, initiate or raise dividends, and make acquisitions. That may help stocks to keep rising, he believes.

Many companies, he estimates, have "anywhere between 15 to 20% of their balance sheets in cash." He thinks that cash hoard and the continuing but slowing growth in corporate profits may help the bull market that began in March 2009 to advance further.

In this video, he offers his views on these topics as well:

  • Despite slowing earnings growth, a significant number of companies are still generating above-average growth. He notes that some of the holdings in Turner Investments' growth-stock portfolios have earnings-growth rates of 15-20% – three times the average rate.
  • In a period of sluggish economic growth, investors tend to gravitate to growth companies that can sustain superior profitability. That tendency of investors may help growth stocks to continue to "outperform over the next several quarters," he says.
  • The housing market, after a number of false starts, seems to be recovering, which should benefit companies like Lennar, Toll Brothers, PulteGroup, The Home Depot, and Lowe's Companies.
  • Manufacturing in the U.S. appears to be making a comeback, and companies like Caterpillar, Cummins, Ametek, and Stratasys can capitalize on that comeback.

Archived episodes:

The views expressed represent the opinions of Turner Investments as of the date indicated and may change. They are not intended as a forecast, a guarantee of future results, investment recommendations, or an offer to buy or sell any securities. Opinions about individual securities mentioned may change, and there can be no guarantee that Turner will select and hold any particular security for its client portfolios. Earnings growth does not guarantee an increase in share price. Past performance is no guarantee of future results.

 

 

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