Rob Arnott, father of "fundamental indexing" and
Pimco's
All Asset Fund (PASAX) PM, advises other investors, "don't try
to find the next Apple."
Fortune
reports 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
Fortune. Arnott also PMs the
PowerShares FTSE RAFI Emerging Markets
ETF.
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.
 
Edited by:
HFD
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