Finding Investment Opportunities: The Year of the Alligator, Contrarian Opportunities in 2014

The strong performance in developed markets equities over the past few years has created a number of divergences between markets (Alligator Jaws) which history tells us will eventually revert to the mean and close the disparities. The ultimate Contrarian investor, Sir John Templeton had a wonderful quote that captures the essence of the current market opportunities "People are always asking me where is the outlook good, but that is the wrong question...The right question is where is the outlook the most miserable". 

 

Join us for an around the world tour of compelling investment opportunities as we look at markets like, Argentina, Greece, Spain, India, China, Japan and the U.S. We will explore the impact of changes in QE policies of the global central bankers, the recovery in southern Europe, the economic transition in China, the opportunity for an historic government change in India, a primer on Abenomics and the great Japan Reflation and the evolution of Global Titans in the U.S. and Europe that are capitalizing on the emergence of a massive consumer class in the developing and frontier markets. 

 

The old market saw that "as goes January, so goes the year" is signaling a year of heightened uncertainty and volatility, so managing risk in portfolios will be a critical component of success as we search for the best investments around the globe. The best way to preserve and grow wealth over the long run is to mitigate losses during difficult periods. Focusing on opportunities where we can buy quality assets with good margins of safety will be a key to success this year. The year of the Alligator could be a challenging one, but there are compelling opportunities for intrepid explorers who are willing to move away from the heard and follow Sir John's investment wisdom.