Chuck Bastyr- Mackenzie Investments

Growth manager favours cash-rich small- and mid-caps.

Michael Ryval 28 December, 2013 | 3:19AM

Global small-cap specialist Chuck Bastyr believes that Asian markets have lately rolled over, while the U.S. is plodding along and Europe is attracting more attention.

"In Asia, multiples have been contracting a bit," says Bastyr, co-manager of the $174-million Mackenzie Global Small Cap Growth and vice-president at Toronto-based Mackenzie Investments. "People are worried about currencies and inflation. The big China story has gone from a commodity story to domestic consumption story. This affects Asia and the flow of funds as well."

Meanwhile, Bastyr notes that European stocks have moved up materially in response to positive earnings revisions. "People are more positive on Europe and less so on Asia." But the U.S. is a conundrum, says Bastyr, because earnings have not kept pace with share prices. "It can only go so far. Earnings have been good, but prices have gone up faster."

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Michael Ryval

Michael Ryval