Portfolio manager sensing ‘wealth effect’ as economy picks up

The first rule with investing is, if it looks too good to be true, then it is, David Avdakov said during Tiffin University’s Good Morning World Breakfast Lecture series Thursday at Camden Falls Reception and Conference Center.

Avdakov, vice president and senior portfolio manager of U.S. Bank, presented “Investment Outlook,” discussing the country’s debt situation, the economy and opportunities with emerging markets.

“There are opportunities out there in the U.S.,” Avdakov said. “Including emerging markets and housing, energy and manufacturing.”

Avdakov joined U.S. Bank as a portfolio manager in 1999 and has more than 16 years of financial and investment industry experience. Avdakov received a bachelor’s degree from University of Dayton and a master’s from Xavier University. He has chartered financial analyst designation and is a member of the CFA Institute and, in 2007, he received Dayton Business Journal’s “40 Under Forty” award for outstanding business and community leadership.

There were four areas Avdakov touched on: stocks; bonds; real estate, commercial and residential; and commodities.

“Investing in capital does well for stocks,” Avdakov said. “The market is at all-time highs, with corporate earnings to grow 8 percent.”

Discussing housing, Avdakov said the market still has a long way to go, but is in recovery.

“(About) sixty-percent of individuals in the year 2000 owned their own home,” he said. “That number now is about 45 percent, due to more people renting.”

As for the economy, Avdakov said consumer spending is on its way back to the normal path.

“People are experiencing what is called ‘the wealth effect,’ where individuals have been feeling wealthier because of the pickup from the economy,” Avdakov said.

Avdakov showed economic growth as it is now and the expectations of the federal government. He said emerging markets will surpass developed markets over the next three years.

In the end, Avdakov said there are plenty of opportunities out there with emerging markets. Manufacturing in the U.S. has more value added, with more products now being made in the U.S., Avdakov said.

The global economy is set to pick up throughout 2013, with moderate growth in the U.S. reinforcing emerging markets, he said.

“David was a timely speaker. He discussed the economy and faced it with such brevity,” Ron Schumacher, vice president for Development and Public Affairs, said.

The next Good Morning World Breakfast Lecture is to take place in September.