BLAKE R. GROSSMAN
Chief investment officer, global advanced active group, Barclays Global Investors, San Francisco
Assets under management: $755 billion
PREDICTIONS
Hot sector: Information technology
Hot stocks: Mylan Laboratories, Riverstone Networks, SUPERVALU, Gtech Holdings, Computer Sciences
Blake Grossman is "very mildly bullish" on the U.S. economy and stocks. "We think stocks are relatively attractive relative to bond yields and cash markets," he said.
While BGI does not provide economic or stock forecasts, Mr. Grossman expects the economy to pick up in 2002, while there is no sign of inflation re-emerging. Lower energy costs, weakened raw materials prices and softening labor costs should help keep inflation tamed, he said.
And while BGI tries to stay sector-neutral and makes just modest bets in its systematic stock selection, he thinks more cyclical sectors and some segments of the information technology sector have been cheap.
Overseas, he thinks Austria, the United Kingdom, Singapore and Canada have become attractive markets for investment.
In fixed income, Mr. Grossman thinks widened spreads have made corporate bonds and high-yield bonds enticing.
