Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  Apple    AAPL

APPLE (AAPL)

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Investors fret on emerging markets and look to U.S.

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/20/2012 | 01:12pm CEST

Argentina's move to seize control of its biggest oil company, YPF, from Spain's Repsol (>> Repsol YPF SA) has led investors to dust off a near-forgotten accepted wisdom: that emerging markets are not for the faint-hearted.

Argentina's move to seize control of its biggest oil company, YPF, from Spain's Repsol (>> Repsol YPF SA) has led investors to dust off a near-forgotten accepted wisdom: that emerging markets are not for the faint-hearted.

Indeed, investment managers and private bankers to the very rich are allocating more of their portfolios to developed markets, particularly the United States, as faith in its structural resilience outshines the appeal of developing countries.

"If you are very thoughtful about it and don't want to get caught up in the headlines about the financial crisis dealing the U.S. a fatal blow, people are underestimating the resilience and structural diversity of the U.S. economy," said Sharmin Mossavar-Rahmani, Chief Investment Officer for Goldman Sachs' private wealth management business.

To many, the nationalization of YPF is a reminder investment in countries such as Argentina, Brazil, India or China exposes money to higher political risk, a fact often ignored amid frustration at sluggish growth rates in the developed world.

While Argentina's economic nationalism reminded people of political risk, mishaps suffered by some star investors who dabbled with the exotic have also left them reflecting on higher governance risk in such markets.

Fidelity's veteran British fund manager Anthony Bolton has disappointed investors with poor performances since he started running a China fund in 2010, and has flagged corporate governance in the region as a particular "challenge".

Goldman Sachs' (>> Goldman Sachs Group, Inc.) private client unit has long been a proponent of investing in the United States, arguing the strength of its political institutions, its corporations and levels of innovation give it bright medium-term prospects.

"We like emerging markets but we're not euphoric about emerging markets," said Mossavar-Rahmani.

This view contrasts with a widely held position that gained traction after the financial crisis, that the developed world is entering a long decline and the best prospects are to be found in fast-growing emerging markets, particularly in Asia.

"In our view, the global financial markets crisis of 2008-2009 was a watershed event and we are moving towards a new world order," said HSBC Global Asset Management in an investment report on Thursday.

But while investors are reporting signs that more money is starting to move to developed markets, the trend is already in evidence in the manufacturing sector.

"Capital goes where it's best treated," said James Abate, manager of PSigma's American fund and managing director of New York-based Centre Asset Management.

Big companies including Boeing (>> The Boeing Company) and General Electric (>> General Electric Company) have said they are considering moving some manufacturing back to the U.S. from emerging markets.

"We, lemming-like, over the last 15 years extended our supply chains a little too far globally in the name of low cost," said Jim McNerney, chief executive of world No. 2 plane maker Boeing, at a forum in Washington this year.

"We lost control in some cases over quality and service when we did that. We underestimated in some cases the value of our workers back here.

Arguments that structural features of the U.S. economy give it a secular advantage over emerging rivals will resonate with academics, many of whom have questioned assumptions by economists in financial services about the rise of China.

Economists such as Daron Acemoglu at the Massachusetts Institute of Technology argue authoritarian countries are less effective than open societies such as the U.S. at incentivizing entrepreneurship and innovation.

A population incentivized to innovate and invest, results in more sustainable long-term economic growth than can be achieved in unequal societies like China, the argument goes.

More investors are now pointing to the success of companies such as Apple (>> Apple Inc.) as signs the U.S. is better at fostering new ideas and has a bright future in spite of recent financial turmoil.

"The high levels of innovation that exist here in the U.S. are quite hard to replicate in other parts of the world, and I think innovation is important and people do tend to forget about it," said Joanna Shatney, a portfolio manager of U.S. equities at Schroders (>> Schroders plc).

"If you're looking for the 'Steady Eddy' tortoise that might win the race ... we've got real ways to grow our economy."

(Reporting by Chris Vellacott, editing by Sinead Cruise and David Hulmes)

By Chris Vellacott

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on APPLE
04:32p RISKIFIED : Announces $33 Million Growth Round Funding Led By Pitango Growth, Wi..
01:23p APPLE : Releases First iOS 11 Public Beta to Testers
08:57a APPLE : CEO talks security partnership with Cisco
08:56a APPLE : and Cisco discuss security partnership
07:03a APPLE : Perils Of Back Door Encryption Mandates
05:31a APPLE : Service Center in Delhi Launches Its Repairing Services of Apple Gadgets
05:06a BLOOMBERG : Apple Working With Hertz To Manage Self-Driving Car Fleet
06/26 Apple working with Hertz to test self-driving technology - BBG
06/26 Apple, Cisco team up to push for cyber security insurance discounts
06/26 TIM WESTERGREN : Pandora Media's CEO Tim Westergren to step down - Recode
More news
Sector news : Computer Hardware - NEC
06/26 EU court seen ruling on Intel antitrust case next year - judge
06/21 Bain to be biggest investor in Toshiba chip unit, putting up $7.7 billion - s..
06/21 JAPAN TRADE MINISTRY ASKS WESTERN DI : sources
06/15 TOSHIBA : Western Digital expects ruling on injunction request by mid-July
06/10 Western Digital to raise Toshiba chip offer in last-ditch bid
More sector news : Computer Hardware - NEC
News from SeekingAlpha
07:04a WALL STREET BREAKFAST : Google Hit With Record EU Fine
01:14a Apple Buys Eye-Tracking Company For Augmented Reality
06/26 Whole Foods Could Be The Next YouTube
06/26 APPLE AND STRATASYS : Taking Stock With Tech
06/26 UBS ups Apple price target on China growth expectations
Advertisement
Financials ($)
Sales 2017 226 647 M
EBIT 2017 60 585 M
Net income 2017 46 665 M
Finance 2017 164 551 M
Yield 2017 1,61%
P/E ratio 2017 16,36
P/E ratio 2018 13,94
EV / Sales 2017 2,63x
EV / Sales 2018 2,26x
Capitalization 760 282 M
More Financials
Chart APPLE
Duration : Period :
Apple Technical Analysis Chart | AAPL | US0378331005 | 4-Traders
Full-screen chart
Technical analysis trends APPLE
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 46
Average target price 158 $
Spread / Average Target 8,3%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Timothy Donald Cook Chief Executive Officer & Director
Arthur D. Levinson Chairman
Jeffrey E. Williams Chief Operating Officer
Luca Maestri CFO, SVP & Vice President-Human Resources
Kevin M. Lynch Vice President-Technology
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
APPLE26.30%762 681
HP INC22.37%29 963
HEWLETT PACKARD ENTERP..-3.22%27 932
SEAGATE TECHNOLOGY PLC11.79%12 657
PEGATRON CORPORATION--.--%8 212
LENOVO GROUP LIMITED6.57%7 165
More Results