Rate this article

Are We Reaching a Turning Point in the Market?

Portfolio Manager Alessio de Longis provides his insight into what’s ahead.


  • Investors should be very careful about historical correlations
  • We believe dips in the equity market are careful buying opportunities

Aired: January 27, 2014 on Bloomberg 

Host Erik Schatzker: Is 2014 going to be a year in which you, so to speak, see the men separated from the boys? You can’t just be long and strong and hope for the best; or long developed markets short emerging markets and hope for the best.

Alessio de Longis: Exactly, I think it’s a year where we need to be very careful about historical correlations and we have to think creatively about the opportunities set. This is a year just like 2013 where, in my opinion, valuations and fundamental depreciations really play a role. Now these environments are very rare, they occur at the turning points of the market. Well we tend to focus, when we do statistical analysis, we tend to focus on the middle part of the cycle when the momentum builds in; but at the turning points the correlations break down. You have to be more creative and constructive about the opportunities set.

Host Stephanie Ruhle: I.e. things just got hard.

Host Erik Schatzker: Yeah, if 2014 isn’t the year that we enter a major correction or a bear market, that could be on the other side of this?

Alessio de Longis: Exactly.

Host Erik Schatzker: Something to be scared about or not? I mean this is what everybody wants to know, is the period that we are entering something to fear?

Alessio de Longis: I don’t think so, personally I see dips in the equity market as careful buying opportunities and frankly also the outlook for most fixed income investments, I think we tend to be a little bit to bearish on them. When you start factoring in what is priced in, in fixed income markets and you start factoring in how steep those yield curves are; selective exposure to fixed income will still pay off in some cases, in my opinion, equity like returns.


The views expressed by OppenheimerFunds portfolio managers represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict performance of any investment. These views are as of the date of this interview and are subject to change based on subsequent developments. Past performance does not guarantee future results.

Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes and geopolitical risks. Emerging and developing market investments may be especially volatile. Currency investments may be particularly volatile and involve significant risk.

Fixed income investing entails credit risks and interest rate risks. When interest rates rise, bond prices generally fall, and a fund’s share price can fall.

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008