Blackrock's (BX) Stattman Not Happy About Equities as Best Investment, Avoids BRICs
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Blackrock's (NYSE: BX) Global Allocation Fund manager Dennis Stattman is overweight in equities.
The thing is, he's not happy about that.
At a Morningstar conference today, Stattman said that stocks were "the best game in town." But he's not sure whether or not they're a good game.
With P/E ratios making stocks look cheap, Stattman expects that shrinking profit margins and further Fed actions will do much to curtail current exuberance.
Stattman is underweight bonds, noting the there are no reliable coupon weights on global sovereign debt. He is currently long convertible bonds and short-duration securities.
Top holdings in the fund include larger-cap, dividend-paying companies like Exxon Mobil (NYSE: XOM), General Electric (NYSE: GE), and International Business Machines (NYSE: IBM). Stattman noted that global integrated oil companies seemed dirt-cheap to him.
Further, Stattman is avoiding the BRICs (Brazil, Russia, China, and India), saying that tightening monetary policies to fight inflation could pose a risk to companies in emerging markets.
Blackrock's Global Allocation Fund has returned 18 percent to investors over the last year, and average 8.4 percent per year over the last 10, beating out 79 percent of competitors.
The thing is, he's not happy about that.
At a Morningstar conference today, Stattman said that stocks were "the best game in town." But he's not sure whether or not they're a good game.
With P/E ratios making stocks look cheap, Stattman expects that shrinking profit margins and further Fed actions will do much to curtail current exuberance.
Stattman is underweight bonds, noting the there are no reliable coupon weights on global sovereign debt. He is currently long convertible bonds and short-duration securities.
Top holdings in the fund include larger-cap, dividend-paying companies like Exxon Mobil (NYSE: XOM), General Electric (NYSE: GE), and International Business Machines (NYSE: IBM). Stattman noted that global integrated oil companies seemed dirt-cheap to him.
Further, Stattman is avoiding the BRICs (Brazil, Russia, China, and India), saying that tightening monetary policies to fight inflation could pose a risk to companies in emerging markets.
Blackrock's Global Allocation Fund has returned 18 percent to investors over the last year, and average 8.4 percent per year over the last 10, beating out 79 percent of competitors.
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