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(© Brendan McDermid / Reuters)
(© Brendan McDermid / Reuters)

Earlier Discussion

What Jim O'Shaughnessy expects in 2012 Add to ...

If the Euro is to be saved, the ECB must be the lender of last resort, the way the Fed is in the U.S., currently, Germany is not backing that option. Until the Germans agree to a far more active ECB, things will remain uncertain for the Euro.

[Comment From ]

Some of the pipeline stocks like PPL and IPL.un have been on a tear. Do you think it is just funds looking for high-dividend yields, or are the valuations justified?

[Comment From Jim O'Shaughnessy]

We own those stocks in our RBC O'Shaughnessy All Canadian fund. Since we insist on reasonable valuations, they are currently still meeting our rules for holding the names.

[Comment From Mo from Montreal ]

What do we expect from emerging market such as China and India for the next year. Is the growth sustainable and what are the impact on the North American equity market and commodities price?

[Comment From Jim O'Shaughnessy]

I think China is heading for a rather dramatic slow down. They have built many "ghost cities" where the buildings are not occupied just for the sake of building them. I also think their over heated real estate market is due for a slow down.

[Comment From Fernando ]

During 2012, do you see any special effect on US stock prices because of the presidential elections? I have heard people saying they will buy now and sell a couple of weeks before the election.

[Comment From Jim O'Shaughnessy]

If the US election results in clarity around regulations and taxes I think that would be a very good result for the stock market.

[Comment From Ixion ]

Do you foresee developing nations with arguably undervalued currencies (e.g. China) allowing those currencies to float more freely? How much of a boost will this give to the manufacturers in the west and what industries / firms would benefit the most from such a move?

[Comment From Jim O'Shaughnessy]

China would like its currency to remain low versus the dollar in order to allow it to continue with its export boom. At some point, they will be forced to allow it to more freely float and that should see it go up in value...

[Comment From Jim O'Shaughnessy]

If that occurs, it should be good news for western manufacturers.

Darcy Keith - And, we have one final question from Michael:

[Comment From Michael in Vancouver ]

High Yield including corporate bonds and reit's have had a great run over the past few years. Are there any headwinds facing this asset class that causes you concern?

[Comment From Jim O'Shaughnessy]

I like high yield stocks over bonds, and still think REITs are attractive.

Darcy Keith - Thanks Jim. I'm afraid that's all the time we have for Q&As for today. Any final thoughts for our audience today?

[Comment From Jim O'Shaughnessy]

Stocks should be one of the better performing asset classes over the next ten years, just make sure that you don't react emotionally when they get hit in the short term. If you can stay the course, you should be very pleased with your portfolio over the next five to ten years.

[Comment From Jim O'Shaughnessy]

Thank you so much for having me! I really enjoyed it.

Darcy Keith - Great, thanks Jim. This has been a popular discussion, apologies to those who asked questions we didn't have time for. We'll be doing a series of videos with Jim soon as well - look for that in the days ahead.

Darcy Keith - Thanks everybody!

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