Last Year's Dogs Are This Year's Angels: Private Banker

Kirsten Bennett, Special to

Smart investments lie in those companies that are boosting market share, creating healthy balance sheets, and taking advantage of price leadership, according to Javelin Wealth Management CEO Stephen Davies.

Who Will Shine in 2010?

“The surprising development in markets this year is the degree to which last year’s dogs have been this year’s angels,” he told CNBC.

For investments in 2010, “it’s all going to be all about those companies that are boosting market share, taking advantage of healthy balance sheets to grow that market share to grow margin, and the degree to which companies like that are able to start seeing a bit of price leadership,” Davies said.

In Europe, companies are focusing on recovering their balance sheets and taking restructuring measures “largely as a result of pressure from regulators,” he said, adding that although US restructuring is slightly slower, “it is still going to be a feature.”

As Western countries focus on recovering balance sheets, “elsewhere it is still going to be about recovery margins,” he adding, saying that these recovery margins will create trade growth which will boost the Asian and emerging market economies.

-To watch the full interview, see video above

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