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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.

Whither this Election Year Market?

Excerpted from the May 2012 Issue

May 24, 2012

As political posturing and rhetoric continues to escalate, most of us are wondering about the election’s potential impact on our investments.

Historically, the stock market generally does well in a presidential election year. The S&P has risen in 12 of the 15 presidential election years since 1952. However, the trend has been less clear in recent election years, with stocks showing significant losses in 2000 and 2008. While election year results have generally been good, the best returns have typically come in the year before the election year—on average more than double the annual return rates seen in each of the other three years.

Much has also been made of how each candidate—and his respective party’s philosophies—will impact Wall Street. History shows us that the market has tended to respond more favorably to a Republican victory in past elections. In short, although there is some logic to the presidential cycle, you shouldn’t be trying to time the stock market—in an election year or any other time. Read more historic election year statistics.

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How To Find Good Value Stocks When They Are Scarce

With U.S. stocks well into their eighth year of a bull marketĀ and the economy showing increasing signs of strength, finding ideal turnaround stocks--those with all three ingredients--can be a needle-in-the-haystack project at best. What is an investor to do in a seemingly barren value stock landscape? Read More.

Market-Beating Profit: The 200+ Club

Turnaround stocks present a unique opportunity for savvy investors to buy in at bargain prices. Take a look at this list of just a few of our purchase recommendations that have realized a return rate of 200% or better:

200+ Club: Value Investing Stock Profits with 200% or Better Return

* Bristow remains in our active portfolio (currently as a Hold), and 2,849% gain is as of 1/17/17.

Bet on These Battered Stocks

Battered Stocks/Tribune Logo: Value Investing from The Turnaround Letter Highlighted in the Chicago Tribune

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Chicago Tribune highlighted this Kiplinger's Money Power write-up on George's contrarian investing approach and The Turnaround Letter's April 2016 monthly turnaround stock pick.

 

Darren Fonda notes, "…besieged stocks often start to recuperate as the headlines fade and investors anticipate a return to precrisis sales and profits. The trick, of course, is to find companies that are more likely to rebound from a setback than collapse entirely."

 

Learn more about Putnam's turnaround investing strategy.