{"id":44037,"date":"2013-11-11T11:54:57","date_gmt":"2013-11-11T16:54:57","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=44037"},"modified":"2013-11-11T11:54:58","modified_gmt":"2013-11-11T16:54:58","slug":"november-2013-portfolio-outlook","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/11\/11\/november-2013-portfolio-outlook\/","title":{"rendered":"November 2013 Portfolio Outlook"},"content":{"rendered":"

By The Sizemore Letter<\/u><\/a><\/p>\n

In the July issue of my newsletter, The Sizemore Investment Letter<\/a>, I made three predictions for the remainder of 2013.<\/p>\n

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  1. Europe would come \u201cback from the dead\u201d and lead the U.S. market.<\/li>\n
  2. Emerging markets would enter a new bull market.<\/li>\n
  3. Income-oriented investments would recover from the beating they took during the summer \u201cTaper Tantrum.\u201d<\/li>\n<\/ol>\n

    I love it when a plan comes together.\u00a0 As I noted in last month\u2019s manager commentary<\/a>,\u00a0 European markets are indeed back from the dead and outperforming their U.S. counterparts, the last week notwithstanding.<\/p>\n

    Emerging markets have also rallied hard and, I expect, are in the early stages of a new bull market.<\/p>\n

    And income-focused assets have enjoyed a rebound after the brutal drubbing they took, though it may be too early to call victory here.\u00a0 Treasury yields are rising again and at their highest levels in a month.<\/p>\n

    Sizemore Capital\u2019s \u00a0macro themes are working. And in case you\u2019re curious, one of the holdings in my Global Macro Portfolio<\/a>\u2014Daimler (<\/span>DDAIF<\/a>)<\/span><\/b>\u2014is winning InvestorPlace\u2019s Best Stocks of 2013<\/a> contest with just two months left to go in the year.<\/p>\n

    I\u2019m a little worried that the U.S. markets are getting ahead of themselves.\u00a0 Though I do not by any stretch believe we are in a \u201cbubble,\u201d the S&P 500 looks fairly priced, and bargains are getting harder and harder to come by across all market caps.<\/p>\n

    That is not at all the case overseas, however.\u00a0 European stocks, even after their recent run, still trade at substantial discounts to American stocks (20%-40% based on trailing earnings).\u00a0 And emerging markets are so cheap they appear to have been left for dead. So long as this pricing disparity persists, I intend to focus must of my investment research outside of the U.S. markets.<\/p>\n

    Again, I\u2019m not bearish <\/i>on the U.S. markets.\u00a0 I\u2019m just less enthusiastic about them at current prices, and I believe we can find better investment bargains elsewhere.<\/p>\n

    Charles Lewis Sizemore, CFA, is the chief investment officer of the investment firm Sizemore Capital Management.\u00a0<\/em>Click here<\/a>\u00a0to receive his FREE 8-part investing series that will not only show you which sectors will soar, but also which stocks will deliver the highest returns. This series starts Nov. 5 and includes a FREE copy of his\u00a0<\/i>2014 Macro Trend Profit Report.<\/em><\/i><\/p>\n

    This article first appeared on Sizemore Insights as November 2013 Portfolio Outlook<\/a><\/p>\n

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