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George Putnam, one of the country's leading turnaround and distressed investing professionals, shares his timely insight on the economy and turnaround investing opportunities.

Traditional Retailers: Will Brick-and-Mortar Stores Disappear?

Excerpted from the April 2016 Issue
Our answer is “No, at least not for many decades,” but many investors appear to disagree. When some retailers posted disappointing results last autumn, many retail stocks dropped 40-50% from highs set only a few months earlier.
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When to Buy Bonds Instead of Stock

Excerpted from the March 2016 Issue
The key to deciding where to invest in a company’s capital structure--as with any investment decision--is evaluating risk and potential reward. Unfortunately, however, one of the fundamental rules of investing is that bigger rewards (higher returns) almost always come with higher risks...and vice versa. This is key for anyone deciding the most prudent investment strategy when it comes to distressed securities.
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What's With the Stock Market?

Excerpted from the February 2016 Issue
January was a tough month for most investors. Where does the market go from here? Of course, we don’t know for sure; but we do think the gloom and doom is overdone.
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2015 Bankruptcy Recap: 46% Increase Fueled by Oil & Gas/Mining Industry--Further Uptick Predicted

Looking back at 2015, research reveals a 14% decline in overall business bankruptcies but a 46% uptick in public company Chapter 11 filings—with a striking 51% of those filings coming from the battered Oil & Gas/Mining sectors. Economic indicators point to further increases in corporate bankruptcy, in general, and Energy-related filings, in particular. Just a few days into 2016, this viewpoint has already been validated by Arch Coal's long-awaited $8 billion Chapter 11 filing—and continuing oil price plummets severe enough that OPEC will likely convene an emergency meeting to address "shattered" economies.
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Yearend Bounce Candidates: When the Calendar Makes Losers Into Winners

Excerpted from the December 2015 Issue
Most of the time we recommend taking a long-term view and focusing on underlying business fundamentals when choosing stocks to buy as part of a solid turnaround investing strategy. However, around this time of year it is worth considering a shorter-term strategy based more on the quirks of the calendar--and the tax law--than on business fundamentals.
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Are the "Experts" Usually Wrong? Time to Buy Emerging Markets?

Excerpted from the October 2015 Issue
If you look longer-term--both backwards and forwards--emerging markets look like much more promising investments...and many of the stocks have decent dividend yields to compensate you in case you have to wait a while for a rebound.
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Companies Looking for Trouble: Contrarian Investing Opportunity

Excerpted from the October 2015 Issue
There is growing evidence that Chapter 11 bankruptcies and restructurings are on the rise. The principal drivers for this are the huge amount of debt that has been raised over the last decade, and the sharp decline in commodity prices. An increase in bankruptcies isn’t necessarily a bad thing.
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Consider Taking Tax Losses Now--Beat the Year-End Bounce Rush

Excerpted from the October 2015 Issue
With all the volatility in the stock market this year, many investors probably find themselves holding some stocks in which they have sizable losses. By selling those losers, you can use the losses to offset taxable gains that you may have realized during the year.
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The China Syndrome: Stock Market Volatility & Turnaround Investing Strategy, Part II

Excerpted from the September 2015 Issue
We believe that it is very important not to let the market volatility spook you into bailing out of stocks or taking other similar drastic action. While it may be painful to ride out a sharp downturn, that is the best strategy. The market will recover from any of these downdrafts, usually quite quickly.
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George Putnam's Favorite Stocks for 2016

stock picks

Distressed Investing Blog

Distressed Investing Blog

Traditional Retailers: Will Brick-and-Mortar Stores Disappear?

Our answer is “No, at least not for many decades,” but many investors appear to disagree. When some retailers posted disappointing results last autumn, many retail stocks dropped 40-50% from highs set only a few months earlier. Read More.

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so why should you trust The Turnaround Letter?

  • The Turnaround Letter's 15-year returns were 11.0%--vs. S&P's 2.9%
  • 30 Years of Turnaround Investing Experience & Reliable Stock Market Advice
  • 2015's Closed Out Purchase Recommendations Averaged 53% Stock Profit
  • Diverse Monthly Stock Picks Personally Selected by George Putnam

Banking on a Financial Sector Turnaround

bank stocks

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MoneyShow.com recently tapped George's favorable opinion for a banking industry rebound. In "Turnaround Expert's Banking Bets," Steve Halpern highlights a trio of Putnam's top stock picks from the battered financial sector.

 

George reminds value investors: "Fortunately, many of the factors...just aren't present in the market, and the other reason that investors seem to be down on the banks is they sort of expected the Fed to raise interest rates a little faster than they have. And the banks do better when interest rates are rising because they have wider margins on their loans, but I think the Fed will gradually raise rates to we will see profits improve, and so I think this downturn is really temporary."

 

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