Things May Be Looking Up for Investors

The economic outlook is better than investors might think, according to OppenheimerFunds.

“I’m not going to sound like Pollyanna because I am aware of problems around us,” but there are favorable signs, Jerry Webman, chief economist at OppenheimerFunds Inc., said during the firm’s webinar, “It’s Better Than You Think.” These signs include a recovery of the housing market, more job openings, an increase in U.S. crude oil production and debt stabilization.

Although the housing market has not recovered to pre-financial crisis levels, Webman said the deleveraging situation looks more promising. “The U.S. consumer isn’t in bad shape from a liability point of view,” Webman said. “I think we’re closer to the end of the deleveraging process than we are the beginning.”

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Housing prices, sales and starts are all up from 2009 levels, he added. The employment situation is also improving, with 6.3 million jobs gained from 2011 to 2013 (U.S. employees on non-farm payrolls).

Emerging markets also look promising, with nearly all reading above 50 on the Manufacturing Purchasing Managers’ Index—a reading above 50 implies expansion. “We think there are a lot of good opportunities internationally,” said Art Steinmetz, executive vice president, chief investment officer and portfolio manager at Oppenheimer.

Steinmetz said alternative fixed-income strategies—real estate investment trusts (REITs), master limited partnerships (MLPs), emerging markets and leverage loans—can help outpace inflation. “Those are areas you should consider if you are trying to diversify your portfolio,” he said.

What Would James Bond Drive?

Move over, Italy. British car brands are the top dream cars for most people, a survey found.

Future Drive Motor Show’s survey—which asked, “If money was no object, which car brand would you like to see in your garage?”—revealed that four of the top 10 desired brands are made in the U.K.: Aston Martin, Bentley, Jaguar and McLaren.

Rounding out the list were the three Italian brands Lamborghini, Ferrari and Maserati, and the three German brands Mercedes-Benz, Porsche and Audi.

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“The glamour and desirability of our iconic brands seems to grow,” said Giles Brown, managing director of Future Drive Motor Show. “Ingrained in our minds are the Bentley Boys and the James Bond Aston Martins.” The reputed most desirable car in the world is the Jaguar E-Type, according to Brown, and the McLaren, which he terms “the new boy on the block,” needs no introduction. (For those who do, it’s a British Formula One racecar.)

Many of the popular brands also have new models: the McLaren P1; the Aston Martin Vanquish; the Jaguar F-Type; and Bentley’s latest Continental GT Speed coupe and convertible. Lamborghini, Ferrari and Maserati also all have new models, as do the German Audi and Mercedes-Benz brands.

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