Connect with us

Hi, what are you looking for?

Jewish Business News

Money

Charles Brandes: Active Investment Strategies, Emerging Markets, Will Make a Comeback

Charles Brandes

One of the most closely followed value investors, Charles Brandes, who has modeled his approach after the legendary Benjamin Graham, told Advisor.Ca that active, rather than passive, investing strategies will make a comeback. The founder of Brandes Investment Partners in San Diego said that while the trend has favored passive investments, with the number of emerging market assets in passive vehicles increasing 40% from 2002 to 2013, Brandes sees that trend reversing. He quotes Andrew Haldane of the Bank of England, “The move into passive and tracking strategies increases the potential for investor herding and correlated market movements. Both potentially have implications for market movements. Both potentially have implication for market movement dynamics and systemic risk.” Investor awareness of these problems will cause renewed interest in active funds.

In addition, since U.S. and Canadian stocks have been rising, it is hard for investors to find bargains. Therefore, it is likely that they will look to other countries, particularly in emerging markets, for value investments. He notes that emerging market stocks are undervalued both in relative and absolute terms.

Finally, he predicts equities will outperform bonds by the largest margin in 30 years.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Newsletter

Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

empty

The contract signed between the Israeli government and Pfizer shows clearly and unequivocally that this is a clinical study on humans - The agreement...

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

Advertisement
cialis cialis satış