Ask George

George Putnam, one of the country's leading turnaround and distressed investing professionals, answers your investing questions. This is your chance to find out everything you wanted to know--but were afraid to ask--about turnaround investing.

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Does the poor performance of the stock market in May indicate that the U.S. is headed for a new recession?

June 15, 2012

This question comes up frequently when the market takes a dip. While it is true that the stock market does sometimes anticipate a recession, the market is far from an accurate economic indicator. As the Nobel prizewinning economist Paul Samuelson once said, “The stock market has predicted nine of the last five recessions.” In fact, in the last few days as I was preparing to write this, the market has already staged a sharp turnaround. Bottom line: don’t try to time the market!

(Question submitted by Richard M.)

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Distressed Investing Blog

Distressed Investing Blog

Mutual Funds Offer Ready-Made Diversification

While we normally focus on individual stocks, from time to time we like to look at mutual funds that focus on turnarounds. Mutual funds can be attractive for many investors because a single fund can provide fairly broad diversification across a large number of stocks. There will be years that large, mainstream stocks will perform badly, and that's when contrarian funds like these can really shine. Read More.

Turnaround Stock Strategies

stock market advice

stock market advice

TL Spotlight

George Putnam has always followed the same straight-forward and highly-profitable investment philosophy. He published his first Turnaround Letter issue back in 1986, and readers have seen extraordinary long-term stock profit ever since.

 

In fact, 12 of 2014's 13 closed-out purchase recommendations saw gains--with five of those enjoying total returns greater than 100%. The Turnaround Letter's average return for 2014's stock picks is +82%:

 

2014 Closed Out Purchase Recommendations

Value Stock Picks

* Calculation includes dividends and price changes between purchase recommendation and current price.

 

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