Despite strong corporate earnings and free cashflow generation, US equities continue to be overlooked, writes Richard Nackenson, managing director of Neuberger Berman and senior portfolio manager for the Neuberger Berman Multi-Cap Opportunities fund.
US equities (S&P 500) have outperformed US fixed income (Barclays US Aggregate Bond index) by over 43%, from January 2009 to November 2012. Remarkably, during that time period investors have allocated approximately five times more money to bond funds than to equity funds. As we move into 2013, macro issues remain a key driver of investor sentiment. While there have been broad signs of economic improvement, investors remain focused on the outcome of US fiscal negotiations. These issues are masking compelling valuations at the company level. We believe tremendous opportunities exist for...
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