Stock tickers to consider adding to your portfolio for the week of June 5 – 9 are: Two Chinese growth stocks BABA and WB; Dividend stock with strong dividend growth AVGO; High yield dividend stocks STWD, HSBC, IRM, and EPD; the technology dividend fund TDIV; and the speculative stocks NEO and AERI. Take no more than relatively small positions in the speculative stocks and place stop losses on them to protect your capital.
This week is full of political noise, especially on Thursday. Investors should ignore it as it doesn’t effect long-run fundamentals. Weak labor market data from last week is a negative for Fed tightening and that benefited stocks. Weak labor market data is merely a carry over from the previous administration. Ignore that. The future looks brighter and that is what determines stock prices. Given the likelihood of political noise this week, all traders and investors should look to buy on any dip.
Stock picks and market strategy for the second week of June, 2017 (June 12 – 16) are as follows:
1. Stock Pick tickers: XLU, DFCSX, EVA, PBT, ACN, HCSG, MA, AMWD, AGNC, ARR, UCTT, SOXL. Defensive plays are the utilities SPDR (XLU) which is already up 9% on the year and the EU value and growth fund DFCSX, which yields 2.3% in dividends. Dividend growth stocks are EVA, PBT, ACN, HCSG, MA, and AMWD. Monthly dividend payers are AGNC and ARR, which are both safe dividend plays that depend on the economy continuing to chug along or improve. Pure growth plays are UCTT, and SOXL.
2. Market Strategy: The run up in tech stocks will probably lead to a pause or a pull back at some point. Fast run-ups equal more risk and lead to sector rotations. The underlying economy and consumer expenditures and earnings are strong so sector rotation is just another aspect of the bull markets. Look for EU value stocks to catch investor interest a bit more and to get ahead of the trend buy DFCSX, which is already up 24% on the year. That trend will continue and might even accelerate. If staying in the US, buy the defensive sector SPDR (XLU) and wait for tech to resume. As I indicated, tech is in a long-run Schumpeter wave.
Basically, nothing has changed to dampen the outlook for the longer-run bull market. Depending on your time horizon, investors can ride out the short-run corrections and sector rotations and, if holding some cash, can buy on the dips. Good investing!
Stock picks for week 3, June 19 – 23: Recommended stock and fund tickers to consider adding to your portfolio for week 3 are JFR, BDCS, EVRI, EOS, APU, SIR, RWX, DRA, OHI, DPG, RVT, and GGN. The single growth stock is EVRI, which is on a run. All others are dividend paying stocks and funds with safe dividend yields of greater than 7%. Some, such as EOS, JFR, AOD, and DRA all pay monthly dividends. The bull market continues with no clear end in sight. Technology is still hot and rotation into the EU growth market through dividend growth fund DFCSX remains warranted.
Good Investing!
Stock picks for week 4, June 26 – 30: Consider adding the quarterly dividend paying growth stocks ZTS, TWO and LZB to your portfolio. Growth stocks RHT, AMD, and ADBE are also strong contenders. Currently, the best growth stock of all is Nintendo (NTDOY) and you should strongly consider buying it if you don’t already own it. A real estate investment trust (aka REIT) that pays monthly and is a REIT fund-of-funds and goes by the stock ticker KBWY is also worthy of consideration.
I made a bunch of capital gains on the technology sell-off buy picking them up on the pull-back. I won’t continue to hold these longer as continued volatility in technology is likely. Thus, I am converting my capital gains into a larger number of more stable dividend stocks and funds until the next sell-off. Also, I am adding to my defensive hedge TZA on good market days. A good monthly paying dividend fund that is defensively oriented toward utilities and real-estate is DRA. A quarterly paying utilities oriented fund is DPG. I’d recommend you consider these investments as well.
An additional note. Another way to get into the momentum in Europe is with the monthly paying ETF: OEUH.
Good Investing!
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