New York, NY (PRWEB) October 05, 2012
Stocks have strong potential for generating attractive gains over the long haul while in the short term, occasional periods of market volatility will provide opportunities for buying equities during market dips. This encouraging outlook for equities is featured in a Fred Alger Management, Inc. (Alger) commentary, “Earnings Resiliency Creates Attractive Opportunities.” In the commentary, Alger, which is a pioneer of growth investing, highlights factors that may support long-term equity gains.
The following observations by Alger Chief Investment Officer Dan Chung, CFA, are featured in the commentary.
- Corporations are doing an admirable job of controlling costs, so earnings are resilient. Second-quarter 2012 S&P 500 Index revenues declined 3.71% year over year, but earnings levels persevered.
- Concerns over the euro-zone debt crisis and slowing economic growth for emerging markets have caused many investors to flock to U.S. Treasuries, which has driven down the securities’ yields to the lowest rates in approximately 50 years. The low rates have caused some investors to shun Treasuries to the benefit of equities.
- Corporations have considerable cash balances and many companies are implementing or increasing dividends or buying back stock, which is providing additional support to equity valuations.
- With a price-to-earnings ratio of 13 based on 2012 expectations for S&P 500 constituents, equities are attractively valued.
- A research-driven stock strategy can find corporations with potential for growing sales by capturing market share and by expanding into new markets. Leading companies can benefit by pursuing opportunities being created by large-scale changes in technology, demographics, regulations, and other developments.
The Alger Fall 2012 Commentary can be read in its entirety at http://www.alger.com.
About Fred Alger Management, Inc.
Fred Alger Management, Inc. was founded in 1964 and as of June 30, 2012 managed approximately $16.2 billion. Alger's investment philosophy is focused on discovering companies undergoing Positive Dynamic Change, which we believe offer the best investment opportunities. Alger investment strategies are available to institutional investors through separate accounts and mutual funds and to retail investors through Alger mutual funds. Fred Alger & Company, Incorporated, a broker‐dealer and the parent company of Fred Alger Management, Inc. offers mutual funds as well as institutional funds for defined benefit and defined contribution plans. For more information, please visit http://www.alger.com.
Investing in the stock market involves gains and losses and may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks as the prices of growth stocks tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political and economic developments.
Before investing, carefully consider the Fund’s investment objective, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information about the Fund, call (800) 992-3863, visit http://www.alger.com, or consult your financial advisor. Read the prospectus carefully before investing.
Distributor: Fred Alger & Company, Incorporated, Member NYSE Euronext, SIPC.
NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.