NEW YORK, April 5, 2013 /PRNewswire-USNewswire/ -- Joe Terranova, chief investment strategist at Virtus Investment Partners and a contributor to "Fast Money" on CNBC, told an international audience of students and faculty in New York to have confidence in their instincts, but also to back them up with a sound risk-management strategy. "The first question you want to ask," he said, "is 'How much can I lose?' You need to define your risk first and foremost."
Terranova, speaking on the second day of Quinnipiac University 's Global Asset Management Education (G.A.M.E.) III Forum at the Hilton Hotel Midtown, offered the students some investment advice based on where the world — and the markets — are going. He focused on opportunities created by the lower value of the Japanese yen, and by what he called "the blessing of shale"—an abundance of inexpensive natural gas in the United States.
A devalued yen, aided by government planning, helps Japanese companies sell their products abroad, and that adds the value of large mega-cap companies such as Toyota, Mazda and Bridgestone, he said. Terranova said that Japan's actions will also lead highly competitive South Korea to try and push its own currency lower. "We're seeing that already," he said.
Terranova also pointed to the granting of a federal license to export liquefied natural gas (LNG) globally to a subsidiary of Cheniere Energy, Inc., which has already secured long-term purchase agreements for its gas. He noted major imbalances in natural gas prices around the world that could make export very lucrative. "The expectation is that over the next two years there will be a recognition that we're not going to see big price spikes in U.S.-produced natural gas," he said. "And that will clear the way for the investment needed to safely turn our import terminals into export terminals."