Week 1 (Feb. 1 – 9):
I am always amused when I hear a stock described as “poised for explosive growth.” It’s a catchy line but the same holds for any stock in the market. Odds are, you will be right some of the time. The only thing I will say about my stock picks is that they are subject to rigorous research and systematic screening and that some of them, even in the short-run of only a month, will perform well. The others may pick up speed after a longer period. Thus, I am no longer wanting to offer their relative performance over only a short period such as the previous month. That said, here are those stocks and funds that you may want to take a closer look at as potential additions to your portfolio.
For growth, consider BIVV, MGLN, IT, AYX, BGG, EFSC, EGBN, TBK, and SF. For dividends and growth, consider SCI, LAD, PRI and CG. Growth funds to look at include IUSG, IVW, JKE, MOAT, and IWP. You also may want to consider a closed in fund (CEF) selling at a discount that yeilds 8.7%. The ticker is DPG and it is in the defensive utility sector, but still a reasonable consider ration for a portfolio balanced in terms of offense and defense. Not a lot of people think about that aspect of portfolio balancing or diversification. MOAT is also an offense/defense fund. Of course funds also offer more diversification than do individual stocks.
Take advantage of the recent re-set in the stock market, but don’t be in a hurry. You knew it was going to happen because January was just too good. Get in front of those sectors, stocks, and funds, that are once again going up.
You may notice that I don’t recommend trading options. Those are for traders not investors.
Good investing!
Week 2 (February 12 – 16):
Things look like they are picking up again. Even the hotter inflation number, which I was waiting for, failed to slow the market for long. For dividend growth stocks, consider MAIN (pays monthly), KIM, SEP, and OTC: TRSWF. For growth take a look at SODA, ETFC, ALL, and JPM.. Funds I like are IVW, IWF, and FNI. Some oversold reits that now pay higher yields are VTR, OHI, and STWD. Good Investing!
Week 3/4 (February 20 – 28):
Switching from one regime in which the government tried to stimulate the economy with expansionary monetary and fiscal policy on the expenditure side and at the same time kill the economy with overregulation on the supply side to a replacement regime in which contradictory macroeconomic policies become consistent supply side policies that lead to real and expansionary economic growth associated with an actual economic recovery is, to the stock market, somewhat like sailing through seas where the Atlantic and Pacific oceans collide. Eventually, the stock market will adjust to a long-awaited real economic recovery as opposed to an asset bubble that formed because money only flowed into excess bank reserves and the stock market. The “sea change” involves more volatility and concerns over inflation, the dollar’s falling exchange value (which is good for exports but inflationary for imports), and rising interest rates in the bond market that signal the end of the bull market in bonds. Already, betting on a long declining VIX has wiped out some unwary investors. Quixotic fears of heightened inflation, higher interest rates, and overly aggressive FED tightening will eventually fade. Until then, expect a bumpy ride. Earnings and economic fundamentals have improved significantly and the stock market will eventually catch up. Buy on the dips.
Stocks to consider for growth are MA, RCL, and CTSH. Dividend growth stocks to look at include: AM, MMLP, SKT, FUN, BPL, and EPD. Leading funds are FV and SOXX. Just so you know I don’t like guns or cigarets so I avoid recommending their related stocks. In the meantime, Good Investing!
