Beutel finds the price is right for U.S. consumer stocks

Rising retail sales among positive indicators, Gavin Ivory says.

Sonita Horvitch 26 January, 2011 | 7:00PM

Value manager Gavin Ivory, vice-president and head of the global equity team at Toronto-based Beutel, Goodman & Co. Ltd., is calling for a revival in U.S. discretionary consumption, given that U.S. unemployment has peaked and is gradually declining.

"Investors in U.S. equities have underestimated the benefit to the U.S. consumer from the robust growth in the emerging economies," says Ivory. This growth is having a positive impact on the developed world as a whole, he says.

In the case of the United States, "large capital flows from China have been pouring into U.S. industries as capital investment, making U.S. industrial companies more competitive globally." U.S. industrial stocks have already risen sharply in recognition of this and are expensive, he says.

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Sonita Horvitch

Sonita Horvitch