Turnaround Investing Blog

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

Emerging Markets/International Stocks

United States of Europe?

What’s the difference between Illinois and Greece? The biggest similarity is that they are both reported to be virtually bankrupt. But the big difference is that Illinois is part of the United States and Greece is part of the European Union. 

If the state of Illinois goes bust, it won’t be great for people holding its bonds, but otherwise economic life will go on pretty much as normal for Illinois residents. Moreover, there won’t be much fallout for residents of Indiana, or Wisconsin or any other state. And nobody is likely to worry about the problems in Illinois leading to the demise of the U.S. dollar. That’s because Illinois is part of the United States, and we have a federal government that can levy taxes and a strong central bank. The European Union lacks those features, and so the problems in Greece are raising fears of economic turmoil in Europe, perhaps leading to the collapse of the Euro.

It remains to be seen if the Euro-zone countries can agree on the strong measures that it will take to stem the turmoil. In the meantime, we would be very cautious about investing in most European securities. As turnaround investors, we would normally be tempted to jump into a situation like this, but right now we find the outcome too difficult to call and the downside risk still too great.

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The Turnaround Letter In The News: Equities.com & Forbes

With more than 30 years of turnaround investing and market-beating results, it's no surprise that media and market pundits often seek George Putnam's commentary, stock picks and unique contrarian expertise. Most recently, both Forbes and Equities.com praised The Turnaround Letter. 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:

Value Investing Stock Profit

* Bristow remains in our active portfolio (currently as a Hold), and 1,390% gain is as of 7/19/17.

Here's Why You Should Invest in Asset Managers

 

stock market advicex

 

This Forbes article cites a recent MoneyShow write-up that recommends investors take advantage of the strong stock market and potential interest rate hike by "putting some of your investment assets into the shares of asset management stocks."

 

The article praises The Turnaround Letter's OAK purchase recommendation and quotes George Putnam: "As the corporate debt binge that we’ve experienced since 2009 comes to an end, Oaktree will benefit from a growing number of restructurings and bankruptcies."  

 

Learn more about Putnam's investing success with turnaround stocks.