BEN - 3 Top Investment Industry Stocks to Buy in November
The last few years have been hard for investors, with the short pandemic-driven bear market in 2020 and now a lingering bear in 2022. The pain is even worse for investment managers like Franklin Resources (NYSE: BEN) , T. Rowe Price (NASDAQ: TROW) , and Cohen & Steers (NYSE: CNS) . But the bad news that sent these stocks into a tailspin could be exactly what makes them soar over the long term. Let's take a look at why these three investment industry stocks might just make great investment options in November.
Investing can be complicated, so there's a lot of work going on at Franklin Resources, T. Rowe Price, and Cohen & Steers. But, when you step back, the business models for these three companies are fairly easy to grasp. Each one takes money from individuals (and institutional investors) and invests it on their behalf. In return, these asset managers earn a fee. That fee is usually a percentage of the money they are managing. At the top-most level, the amount of money being managed is known as assets under management, or AUMs.
The problem is that bear markets reduce the value of the stocks and other securities that comprise the assets these companies manage. When AUMs go down, the income generated from managing the assets goes down right along with them. On top of that, bear markets often lead investors to pull money from the market, further reducing AUMs.
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3 Top Investment Industry Stocks to Buy in November