Asset Managers Put Their Money on U.S. Equities
With global stock markets on the skids, U.S. corporate shares are starting to get the attention they deserve. Among their strong points: healthy earnings and generous dividends.
By Frances Denmark
Donald Lindsey has a high-conviction investment idea, and hes acting on it. As chief investment officer of the $1.2 billion endowment fund at George Washington University, Lindsey isnt looking to break into an esoteric market or load up on a new product. Instead, hes increasing the endowments allocation to good old U.S. equities: I still love the asset class, he says.
Lindsey, who has captained the Washington-based fund since April 2003, points to three trends that make U.S. shares a smart buy. First, earnings have far exceeded expectations: Share prices reached record highs in the second and third quarters of 2011. Because corporate America has done a great job of cutting costs, its fattened its profit margins.