, father of "fundamental indexing" and Pimco
's All Asset Fund
(PASAX) PM, advises other investors, "don't try
to find the next Apple."
that Arnott sees growth of his fund by investing abroad.
The best buys in equities are in emerging markets because trading is at
a 20 percent to 30 percent discount compared to U.S. equities, he told
. Arnott also PMs the PowerShares FTSE RAFI Emerging Markets
As for stocks in the U.S., Arnott said:
Apple is a great example of how growth investing sometimes works, and
a great example of the pitfalls of growth investing because there
aren't a lot of Apples. With growth stocks, the expectations for
future earnings are extremely high, and if they don't materialize,
investors get hit hard.
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