The feedback gathered at the recent 2012 Reuters Investment Outlook Summit indicated that many money managers see the year as one with various opportunities, Reuters reports.
Wide selloffs have left the stocks of many companies that are in a strong financial positions with low price-to-earnings ratios, according to the media outlet. Companies headquartered in the United States are currently sitting on $2 trillion in cash, which could set the stage for moves aimed at rewarding shareholders such as raising dividends, acquiring other companies and engaging in share buybacks.
Various market experts shared their input and predictions at the event. Shawn Kravetz, who works as the chief investment officer of Esplanade Capital, said that investors might have to lose their thirst for companies with fast profits and instead put their money in organizations that will generate slow, steady growth, the media outlet reports.
“Things aren’t generally getting worse and in many cases we’re getting a little bit better,” he told the media outlet. “If you stick to your game plan and let the markets come to you,” challenges in the past nine months will prove a “gift in disguise.”
Investors who purchased stock right after the financial crisis had the opportunity for very strong returns simply by holding their equities for a few years.