The market environment has been extremely challenging over the past 18 months and it may take some time for the market and economy to stabilize. Despite the generally bearish sentiment, however, Janus believes there are many individual investment opportunities in the market today that offer compelling valuations and risk/reward profiles.
Below are highlights from Janus' March 2009 Market Perspectives paper, in which the firm's seven global sector teams provide their bottom-up views on a range of topics impacting the companies they cover, from short-term cyclical developments and the new U.S. administration's policies, to secular themes that they believe will drive long-term performance.
Communications
In general, we're looking for the secular growth opportunities that we think have become inexpensive because of the cyclical impact the current environment has had on their revenue streams.
Consumer
In any environment, there are going to be winners and losers, so we are concentrating on companies in the consumer space that are focused on and have been successful at providing exceptional value to consumers.
Energy
While we acknowledge the pressure from a slowing economy, we think the energy sector is an attractive area to invest because of long-term supply and demand dynamics.
Financials
There continues to be considerable risk in financials, but we believe the opportunities are significant and that differentiated research based on fundamental analysis and grass-roots contacts can be more profitable.
Healthcare
We are focused on companies that are addressing unmet medical needs where there are few or no alternative treatment options, as they can do well in difficult economic or political environments.
Industrials
The deep sell-off within the sector has created opportunities in many companies that fit our ideal profile: strong franchises with predictable, recurring revenue streams and high free-cash-flow yields trading at attractive valuations.
Technology
In a challenging economic environment we place more emphasis on companies that have high, defensible margins, and companies with strong product and competitive position.
Read the full Market Perspectives Whitepaper from Janus and listen to Analyst Audio Commentary: "Market Perspectives from Janus' Seven Global Sector Teams." For more information about Janus' thought papers and market perspectives, visit janus.com.
Please consider the charges, risks, expenses and investment objectives carefully before investing or recommending to clients for investment. For a prospectus containing this and other information, please call Janus at 877-33JANUS or download the file from janus.com/info. Read it carefully before you or your clients invest or send money.
Past performance is no guarantee of future results.
The opinions are those of the authors as of April 2009 and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes.
In preparing this document, Janus has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources.
Janus makes no representation as to whether any illustration/example mentioned in this document is now or was ever held in any Janus portfolio. Illustrations are only for the limited purpose of analyzing general market or economic conditions. They are not recommendations to buy or sell a security, or an indication of the authors’ holdings.
This document is not intended to be an offer or solicitation, or the basis for any contract to purchase or sell any security or other instrument, or for Janus Distributors LLC to enter into or arrange any type of transaction as a consequence of any information contained herein. This document is not an advertisement and is not intended for public use or distribution.
Statements in the brief that reflect projections or expectations of future financial or economic performance of a strategy, or of markets in general, and statements of any Janus strategies’ plans and objectives for future operations are forward-looking statements. Actual results or events may differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statement. Important factors that could result in such differences, in addition to the other factors noted with forward-looking statements, include general economic conditions such as inflation, recession and interest rates.
Janus Distributors LLC (4/09)
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