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US veteran Cowart: this is most unloved bull in 40 years
by Matthew Goodburn on Jan 23, 2014 at 10:09
'Balance sheets, cash on hand, profit margins and the level of profits have never been better. Corporate profits have recovered and now exceed pre-recession levels.'
He said: 'Should house prices continue to recover, it is likely some acceleration in economic growth next year is possible.'
Combined with modest employment growth and income growth, Cowart expects to see a further rise in GDP.
'If companies could bring profits back to all-time highs at 2%, where would profits be with growth at 3%? It seems clear to us that the answer is 'higher.'
'Based on our time in the investment business, this is the most unloved bull market ever. There is an old saying that the market will do whatever it takes to frustrate the maximum number of people.'
'Right now, the most frustrating thing the market can do - and has been doing - is to keep going up and not let the under-invested have an easy entry point.'
Over the year to the end of December 2013, the fund returned 40.5% compared to a 31.2% return by the average manager in US dollar terms.
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