Stock Market: Peter O'Reilly

Peter O'Reilly: Turn that frown upside down: Although money managers Lee Ferridge, Peter O'Reilly and Matthew Philo are not optimistic about the economy and markets overall, they still see opportunities amid the mayhem, according to Winnipeg Free Press. Philo: A bond guy, he was reluctant to make any calls on the stock market. "Twenty-five years in the business has taught me the stock market can do anything," he said. Even though revenues will not grow enough to justify what investors are willing to pay to own a company's stock, that's beside the point because, with the Fed pushing money into the marketplace, stock prices are likely to continue inflating with or without growing profits. From a fixed-income standpoint, however, he said the high-yield corporate space should continue to provide good returns. "The best value is fixed income, with the most resilient balance sheets and cash-flow cushions I've ever seen, because it's a good time to be a corporation," he said. With interest rates as low as they are, there's never been a better time to borrow for companies, and rate hikes are unlikely in the coming year because the recovery is so fragile and consequently default risk, even in the junk-bond space, is relatively low and MCT Quick facts O'Reilly: Corporate earnings will help drive stock prices in the U.S. this year. While prices won't rise like they did in 2013, investors in the U.S. stock markets can expect a better-than-average return on investment. "You could see equities in the U.S. up 12 to 15 per cent this year." He also estimated global equities will post low double-digit returns as Europe slowly recovers. "We've come a long way," he said. "I think there is a recovery, but it's more of a bounce-back than a back to the races." (www.immigrantscanada.com). As reported in the news.