Jim Scheinberg was quoted today in an article by Smart Money, an investment magazine by The Wall Street Journal, entitled “6 Investing Strategies for Retiree Wannabes.”
As Layman points out, share-price valuations are still low despite the recent stock market rally. In addition, during the downturn companies across the board trimmed costs and boosted productivity — putting them in prime earnings expansion territory, says Jim Scheinberg, a managing partner at the Culver City, Calif., investment advisory firm North Pier Fiduciary Management. For five quarters in a row, Wall Street has beat analysts expectations 50% of the time, he says. Today, companies are largely positioned for earnings growth as revenues start to increase.
Steer clear of long-term bonds, though, says Scheinberg. If inflation escalates, which is a definite possibility considering the size of the federal deficit, you won t want to be stuck in an investment where the market will demand higher yields that your bond is paying, he says. Once inflation hits, it s a no-win scenario for long-term bonds.