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After 12 years, bulls see stocks coming out of rut

MUTUAL FUND QUARTERLY REPORT

January 08, 2012|By Tom Petruno

Not surprisingly, the dividend-focus strategy already is quite popular on Wall Street. But that doesn't mean it's played out. David Rosenberg, chief investment strategist at wealth manager Gluskin Sheff + Associates in Toronto, is bearish on the economy but still sees appeal in high-income-paying securities of big-name companies that have strong finances (i.e., low debt).

He calls it his SIRP strategy: "safety and income at a reasonable price."

Try to be a disciplined opportunist: Trading short-term rallies within secular bear markets always looks easy in retrospect. But in seesawing markets, the advantage goes to the investor who can stay disciplined about buying favored securities when they tumble.

If you're buying mutual funds via a 401(k) retirement plan, you're already an opportunist: By investing the same amount every paycheck, your plan contributions will buy more fund shares when they're depressed and less when they're high.

Likewise, investors who use so-called target-date retirement funds are automatically maintaining a specific stock-and-bond mix that will shift over time according to a preset formula.

"The funds allow people to be more disciplined than our emotions will allow us to be," Kinnel said.

business@latimes.com

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