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PREMIUM: LEUTHOLD

July 10, 20140 Comments

The Contrarian’s Contrarian

Contrarian money manager Steven Leuthold called it quits from the tightly regulated mutual fund business a couple of years ago. He wanted to escape from the rules, the pressures of managing billions and grueling publishing deadlines. Last year he launched Leuthold Strategies, a small private investment partnership. He’s investing in businesses that many investors consider to be toxic, including uranium mining and Chinese water and pharmaceutical companies. He’ll explain his unusual choices.

PREMIUM: ROBERT KESSLER

July 3, 2014

Bullish On Treasuries

For years Great Investor Robert Kessler has correctly predicted that interest rates would decline to record lows and remain subdued because of subpar economic growth. The founder and CEO of Kessler Investment Advisors is sticking to his guns and maintains that U.S. Treasury bonds will continue to be a major beneficiary. He’ll explain why he thinks Treasuries, one of the most vilified investments on Wall Street should be a core holding in everyone’s portfolio.

PREMIUM: GRIFFIN & TAYLOR

June 26, 20140 Comments

Higher Hurdles For Women

For the start of our tenth season of WEALTHTRACK we are exploring the unique difficulties women face in achieving long-term financial security. The fact is most women not only outlive their male counterparts, they also save and earn less, a daunting combination when paying for retirement. Two award-winning financial advisors explain what every woman needs to know to build a financial plan to last a lifetime.

PREMIUM: PETRIE

June 19, 20140 Comments

The Energy Revolution

Are we really in the midst of an energy revolution? Could the U.S become energy independent? What are the repercussions for the economy, investors and even national security? Financial Thought Leader and energy guru Tom Petrie uses his 40 years of experience as an energy analyst, investment banker and strategist to provide answers in this WEALTHTRACK exclusive.

HASENSTAB: INVESTING WHERE OTHERS FLEE TRANSCRIPT

June 13, 2014

Global bond fund manager Michael Hasenstab, Templeton Global Bond Fund, speaks on his contrarian investment strategies.

Consuelo Mack: This week on WealthTrack, a world traveling Great Investor who treks to unusual out of favor places to find value in shunned bonds and currencies. Why has Templeton Global Bond Fund’s Michael Hasenstab visited China, South Korea and even Ukraine recently? His contrarian views are next on Consuelo Mack WealthTrack.

Hello and welcome to this edition of WealthTrack, I’m Consuelo Mack. How does a global bond fund deliver equity like returns over the long term and stay ahead of its peers and bond markets in a low interest rate environment? By avoiding those low interest rate countries and investing in currencies and debt of faster growing emerging markets. That partially describes the strategy of next generation Great Investor Michael Hasenstab at the Templeton Global Bond Fund which he has managed for more than a decade. Hasenstab, Morningstar’s Fixed Income Fund Manager of the Year in 2010 and winner of numerous other awards oversees close to $200 billion worth of fixed income assets. Known for making sizable and prolonged contrarian investments Hasenstab is acting true to form today. At a time when many investors are fleeing emerging markets he is investing in them. When much of the world is concerned about deflation he is worried about inflation. While the federal reserve is completing its quantitative easing policy, by gradually ending its bond buying program Hasenstab is convinced another central bank, the Bank Of Japan, will more than fill the void and flood the world with inflationary liquidity. And while much of the investment community is worried about how much China is slowing he is encouraged by how much it is growing. While other investors were buying U.S. Treasuries for their safety and liquidity several years ago, Hasenstab was an early seller, a bearish position he maintains to this day. I asked him why.

Michael Hasenstab: Well, it’s a combination of factors. On the one hand we just don’t see value in the U.S. Treasury market. We have from an economic standpoint reasonably good growth, growth coming in at around three percent, inflation coming in around two percent. That is very inconsistent with a 10-year Treasury yield that is below three percent. So if you look throughout history, those type of growth and inflation dynamics would imply a 10-year Treasury yield that’s closer to four to five percent. So from a valuation standpoint it doesn’t make sense, and the reason it’s distorted is that the largest buyer of Treasuries is our own government. So because there’s an artificial buyer in place, we just don’t know what the clearing rate is. So from our standpoint we don’t see value there, and we just need to see the Fed back away and see where a real price settles out, but our inclination is that that real price will be at a yield much higher than it is today.

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