Is this a market you love to hate or the market you hate to love? I think it's the latter because of what the market has been through the last 10 years. Many investors are still not participating despite the high level of pundit bullishness. To us, valuations still look reasonable. Maybe it's the equivalent of the Sports Illustrated cover jinx, but Barron's forecast that the Dow could top 15,000 in two years based on the fundamental research of Wharton professor Jeremy Siegel. Another article looked at the technical aspects and the positioning of the Golden Cross as the impetus for success 12 months later.
So things are bullish but I don't know if there's a lot of belief yet on the long-term nature of the market. Still, we think investors should get involved aggressively on the pullback. While there's still a high level of fear, we think that M2 and the low money velocity is going to be a real catalyst to the upside in the second half of the year for earnings and GDP growth.
We've been on the road quite a bit lately, and one thing we've noticed is that many of the investment managers are under-invested. They want new ideas and good values and our belief is that they're still out there.
Here are two names that Greg Garner, Singular's senior equity analyst, thinks are prime examples of the value and growth opportunities in this market:
- Twin Disk, Inc. (TWIN)
- Dorman Products, Inc. (DORM)
Also, I'd like to point out that at Singular Research, we focus on companies that lack coverage, and one of the easiest ways to benefit from that is a fund we're launching. It's the only fund that's entirely based on our research products and it's geared to capture that long-term advantage of the undervalued, under-followed, and under-covered stocks. You can learn more about the fund and our performance by clicking here to Singular Research.
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