Jerome Dodson

For Jerome Dodson at Parnassus Investments, growing public pessimism about the economy in 2010 convinced him to buy shares. Walter Allianz RCM Technology Fund prices ruled out a recession after business executives said he was improving. Columbia Investment Management Advisors LLC, said Tom Galvin cash register made something impossible to happen.

nearly 10 percent unemployment and falling home sales will not deter U.S. administrators best performing funds this year, delivering average gains of 28 percent. They are optimistic in 2011, encouraging participation in oil producers, suppliers of temporary help and Internet enterprises.

"When everyone is depressed is absolutely the best time to buy stocks," said Dodson, who oversees $ 4500000000 as president of Parnassus in San Francisco. "Everyone was moaning and groaning this summer. At that time, had he been able to divorce yourself from your emotions and buy stocks, would have been great. Just buy, and that's what we did."

Dodson, Galvin, Francisco Claro de Wells Capital Management Inc., Dennis Lynch, Morgan Stanley and George Whitney at Royce & Associates LLC all won 92 percent of their peers by holding 50 percent and industrial stock consumption, the best performing groups in 2010, represented in 500 of Standard & Poor's. Price, which invests primarily in technology providers, 30 percent returned to investors through last week, driven by a concentration of 51 percent of Apple Inc. and a gain of 94 percent in the business software provider Salesforce.com Inc.

Firm

The best money managers were buyers, even as unemployment, which was near the highest since 1983, sent the S & P 500 to a low of 1022.58 in July 2010. Dodson, Price and Galvin said they were betting profit growth, increased cash balances and lower ratings than the average bull market remain intact.

"This year has provided many opportunities for re-entry," said George, the chief investment officer of New York, co-Royce chief and manager of the $ 4200000000 cheap Royce Value Fund, which has returned 27 percent this year and 99 percentile of its peers during the past five years. "Valuations are pretty good, fundamentals are pretty good. There are lots of things that are happening in the market that are positive."

The S & P 500 traded at 15.3 times earnings on 3 December, compared with an average of 16.4 since 1954. The multiple has declined from a peak of 18.8 in March, increased profits faster than stock prices.

New Normal

Mohamed El-Erian and Bill Gross at Pacific Investment Management Co. in 2009 warned that the gains in stocks and bonds lower than historical averages in the coming years. El-Erian, co-chief investment officer of the company president Newport Beach, California, which oversees the world's largest bond mutual fund, said in June 2009 that investors should prepare for an environment of lower growth and performance , hampered by the growing public deficit and regulations.

"We summarize these insights in the sentence:" A bumpy ride to a new normal , We also are careful to specify more than one stage. In fact, the bumpy ride to a new normal scenario, while the most probable, is given a probability of 55 to 60 percent during the past 18 months. We have also detailed the specific characteristics and the likelihood of the three other scenarios that involve both a faster recovery or the risk of relapse. "

Media Vuelta

U.S. actions have returned 6.2 percent a year since 1900 before dividends, as inflation-adjusted data produced by the London Business School and Credit Suisse Group AG in Zurich.

Stocks rallied last week, pushing the S & P 500, an increase of 3 percent, to 1,224.71, after U.S. retailers reported sales that beat analysts' estimates, made in China and enlarged European policy makers extended an emergency loan program in Europe. The Institute for Supply Management's report showed U.S. manufacturing extended for a month 16 in November. The Labor Department said December 3 that employers added 39,000 jobs in November, less than the most pessimistic forecast of economists surveyed by us.

The S & P 500 lost 0.2 percent to 1,222.10 at 10:05 New York time.

Dodson, whose fund is ranked the third best in diversified U.S. equity on data through November 12, returned 28 percent this year. Finisar Corp. purchased companies, the manufacturer of Sunnyvale, California, network equipment fiber optic for Administaff Inc., a provider of human resource services in Kingsville, Texas, speculating who will win as the economy improves in 2011.

Peak unemployment

Clear Wells said that unemployment had peaked signs were reasons for optimism in 2010. The proportion of American workers can not find a job reached a maximum of 26 years of 10.1 percent in October 2009 and has since fallen to 9.8 percent, according to Labor Department data.

"If you have this high unemployment rate, we are more likely to go to an unemployment rate of 11 percent or are we likely to go to a rate of 8 percent or 7 percent rate over time?" said. "The higher you are in terms of some indicators, such as the unemployment rate, the more chance you could find."

Sure bought shares in New York, Monster Worldwide Inc., the world's largest online recruitment, as its shares rose by 33 percent this year. The company returned to profit in the third quarter and earn money throughout the coming year, according to the average estimate of analysts compiled by us.

Free Cash Flow

Lynch, head of reversing the growth of Morgan Stanley Investment Management Inc., said he hoped for companies with the highest yields of free cash flow, or earnings after capital expenditures divided by share price, which had the potential to increase revenue and decrease the financial crisis. Internet-based companies such as Norwark, Connecticut-based travel agency Priceline.com Inc., were among the best examples, he said.

"Our portfolio is full of solid companies with strong balance sheets and sustainable competitive advantage," said Lynch, whose six billion U.S. dollars in Morgan Stanley Institutional Fund Trust Mid Cap Growth Fund has returned 31 percent this year, more than 96 percent of their peers.

The S & P 500 is up 21 percent from its 2010 low in July including dividends. Its total return since December 31, 1912 percent also hit corporate bonds investment grade, which returned 9.5 percent since the beginning of the year. Treasury bonds have been less so with a 2010 yield of 6.9 percent, according to Bank of America Merrill Lynch indexes.

Technology shares

Citrix Systems Inc., a software developer in Fort Lauderdale, Florida that cost $ 1,170,000,000 added to the Allianz RCM Technology Fund, is up 69 percent year to date, the third largest increase in inventories of technology in the S & P 500. RCM technology increased 30 percent this year in the 95 percentile.

"At the end of the first quarter began to buy a more aggressive portfolio," said Price. "We were hearing a lot of concern about a double dip, but actually was pretty good company as we saw with the reports of the third quarter. It was like we read in the headlines and saw the concerns, but we also heard many of our companies tell us 'No, business is good. "So there was the panic of our core holdings."

S & P 500 companies represent about 10.6 percent of its market value in cash, with the third quarter marked the eighth consecutive record corporate reserves, according to estimates and data from Howard Silverblatt , senior index analyst at S & P. The executives are experiencing better than expected earnings, more than 70 percent of S & P 500 exceeded expectations this quarter.

Beating estimates

This is the sixth in a row that more than 70 percent higher than forecast, the longest stretch since at least 1993. The U.S. economy is projected to expand 2.5 percent in 2011 and 3 percent in 2012, according to 63 economists surveyed by us .

"We invest in high quality, high growth and are well positioned today - perhaps better than any time in the last 10 years - because they have better balance sheets in a world where cash is king," said Stanford, Connecticut-based Galvin, 3.5 billion U.S. dollars which occupies the bottom 98 percentile of its peers this year. "You need to have strong balance sheets to invest in new developments and bring to market new products that are gaining market share even in an economy that is showing little lift."

The outflow of funds

Mutual funds that invest in U.S. equities outputs have been every week since the beginning of May, a total of more than $ 80 million, according to data and estimates compiled by the Washington-based Investment Company Institute. Professional investors were also cautious, as futures on the Chicago Board Options Exchange volatility index showed in September that the populations of interest would fall never been greater.

For Dodson on Parnassus, George Royce and course of Wells Capital Management, the negative feeling was a sign opposite where the action of buying. Falls in stock prices given the opportunity to acquire stock in the below-average valuations and wait for bearish investors to change their minds.

"This summer, when people began to worry about a double dip recession, one of the areas most was aggressively sold technology stocks, so we added some semiconductors," said George. "We are value investors and nonconformists. When you have a lot of negative press and people worry about the market, they tend to get better grades in stocks."

George said he bought Fairchild Semiconductor International Inc. and the S & P 500 was reduced by 16 percent between April and July. The South Portland, Maine-based maker of chips that convert and regulate power electronic devices is 78 percent since July 2 and has posted nine consecutive quarters of better-than-projected earnings.

"People are focused on: Is the company doing well and growing fast, and if the answer was 'Yes', who bought the shares," said San Francisco prices. "There was all this overwhelming issue macro like the last two years. That's a great development. If you navigate this environment and the economy continues to improve, the actions that make their way higher in 2011."