BERWYN, Pa.–()–In the latest Quarterly Perspectives With Bob Turner video, the chairman and chief investment officer of Turner Investments notes that although the price/earnings multiples of stocks have contracted in recent years, they could expand in future quarters if corporate earnings continue to grow at least modestly.
“Even if earnings are up only 5% this year, typically what happens is that as the rate of earnings growth slows, you get an expansion of price/earnings multiples”
“Even if earnings are up only 5% this year, typically what happens is that as the rate of earnings growth slows, you get an expansion of price/earnings multiples,” he says. He believes earnings drive stock prices, and the companies with the best earnings should ultimately generate superior stock-market returns. That wasn’t the case in the second quarter, however: the stocks of companies that were the slowest growing and the least volatile and offered high dividend yields were the best performers.
In this video, he offers his views on these topics as well:
- Why foreign investors are helping large-cap stocks to outperform recently.
- The global and U.S. stock markets have “an upward bias.” He characterized European and Japanese stocks as “dirt cheap.”
- Emerging-market stocks may benefit from all the aggressive economic-stimulus efforts by the governments of developing nations.
- Why the risk/reward profile of Apple’s shares remains attractive.
To see this video, click on the link in this news release or this link to Turner’s Web site: http://www.turnerinvestments.com/quarterly-perspective/for/inst
Foreign investments, especially those in emerging markets, are subject to risks not ordinarily associated with domestic investments, such as currency, economic, and political risks and different accounting standards.
The views, opinions, and content presented are for informational purposes only. They are not intended to reflect a current or past recommendation, investment, legal, tax, or accounting advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. Except as otherwise specified, any companies, sectors, securities, and/or markets discussed are solely for illustrative purposes regarding economic trends and conditions or investment process and may or may not be held by Turner, the Turner Funds, or other investment vehicles or accounts managed by Turner or its affiliates. Past performance is no guarantee of future results.
Turner Investments refers to Turner Investments, L. P., its subsidiaries, and affiliates. Nothing presented should be considered to be an offer to provide any Turner product or service in any jurisdiction that would be unlawful under the securities laws of that jurisdiction.
Turner Investments, founded in 1990 and based in Berwyn, Pennsylvania, is an investment firm with more than $11 billion in assets under management in stocks, as of June 30, 2012. Turner manages growth, global/international, and long/short separately managed accounts and mutual funds for institutions and individuals.
As of June 30, 2012, Turner held in client accounts 603,748 shares of Apple.