Paulsen: Investors might shift to more foreign stocks

Jim Paulsen, chief investment strategist for Wells ­Capital Management, writes in his monthly Economic and Market Perspective newsletter that the U.S. stock market is currently residing in a unique global ZIP code.

The U.S. stock market has been dominating global stock markets with leading returns over the last four years. The outperformance rewarded investors who overweighted their portfolios with U.S. holdings during that time. But it also means that the U.S. stock market has become increasingly expensive relative to foreign markets.

Paulsen writes that if the global economies show signs of growth, investors may start shifting their focus to exploit the divergence between U.S. and foreign markets.

"We suspect a forthcoming bounce in global economic growth will soon shift ­interest toward foreign stocks initiating a period of outperformance by international stocks," Paulsen wrote. "Investors who have been solidly rewarded in recent years from overweighting U.S. stocks, may want to consider a new ZIP code for some of their assets during the balance of this recovery."

Patrick Kennedy

Canterbury Park talks real estate plans

Canterbury Park Holding Corp. has nearly 200 acres of underused land that surrounds its racetrack and horse barns in Shakopee. The company announced earlier plans to develop those acres.

Canterbury's third-quarter earnings released on Thursday included an update on the plans. "While this process has taken longer, and has been more challenging than anticipated, we are making good progress in this important strategy to enhance shareholder value," President and CEO Randy Sampson said in the release.

The company has sold 6 acres to the Minnesota Municipal Power agency. Sampson also said the company is "excited about the possibility for the first phase of development of our underutilized properties to include a unique multifamily residential community, along with a business park and retail opportunities including a hotel and restaurants."

Patrick Kennedy

Pentair updates analysts on strategy

Pentair PLC told analysts during an investor day Nov. 6 that it plans to increase cash flow and margins while driving a more focused strategy for growth. Wedbush Securities analyst David Rose was there and summed up his takeaways in an investor note on Monday. "We walked away feeling plenty comfortable with the strategy, but given the mixed track record, are not quite ready for the champagne," wrote Rose.

Patrick Kennedy