On Friday, December we see the bottom drop out of the down as it tumbles 315 for a 1.79% loss. OUCH!!! Yes, that was a sting in the pants. But honestly the market is still significantly up overall for the year and is currently hovering at the point I said it would at the year end of 2014 when I made my predication back in December of 2013. As we know the Energy Sector of the market which includes Crude prices is the cause of the downward spiral. But I think investors and Wall Street are beginning to see the light. One very small sector of the market should not cast a bad shadow on the entire market.
What I would like to do today is take a look at some good things in the market. Highlights to consider and show and tell you why. So lets look at some nice investments that should be good for you in 2015 and how the market should look come this time next year.
I think you will be seeing much the same throughout the year in 2015. Until good quality higher level jobs are created and less minimum wage jobs in the food and retail industry we are going to find ourselves in a slower growing rut. Mutual Funds are going to be a little more safe and stable. There will be many peaks and valleys in 2015 as there have been in 2014 in the market. I am going to suggest that you look at the time next year that the market will be somewhere in the 18,800 range. Anything better is a blessing. I don't see anything possible other than the kind of growth we are currently seeing until most likely September or October of 2016. Not until after the Presidential elections can 2016 be safely predicted, but out best hope in the market is 2016.
So lets look at some stocks and mutual funds together and see if I can help find some good additions to your portfolio. The first one we are going to talk about is PRHSX. This mutual fund takes a licking and keeps on ticking. Morning Star rating of 5 and the best Health Sciences Mutual Funds out there in my opinion. I love this fund as a retired healthcare profession because I know healthcare is here to stay forever. As long as there are sick people there will be healthcare. I like this fund and it has had a great run over the years and would be a good addition to anyone's portfolio. What about FCGAX? A good Large Growth Fund with a Morning Star rating of 4. Looks good and is great for the newer investors. It has no minimum balance to get started and personally I love Franklin Templeton funds. How about ABALX as a nice Balanced Fund. Good to start a base in your portfolio with new investors. PEMGX is a good Principle Midcap Fund for a portfolio that has held its own in 2014. It has a nice Morning Star Rating of 5. I personally own this fund and it has been a very good investment for me over the years. For those that are older and getting ready to retire or who have retired we must look for you at FKINX. I have mentioned this fund before. It is snatching up about 6% per year and pays a nice monthly dividend if you are looking for extra income in your retirement. Again, this happens to be in my personal portfolio, has a Morning Star Rating of 5 and is doing great for me. And the last one we will talk about is VBINX. A Morning Star Rating of 4 this Balanced Fund is a good base mutual fund in your portfolio. It has stood the challenges of 2014 and is a Vanguard winner. I like this one for a new investor getting started in building there base in their portfolio or an older investor pulling back their risk a little. This is a winner.
What about Individual Stocks for the future looking ahead in the market and into 2015? First, with individual stocks I remind you there is more risk and your should have your sectors balanced and they should not make up any more than 40% of your portfolio. Less for new beginning investors and older investors that need to be looking toward retirement and start lowering their risk in the market. So first I am going to look at BABA. A hot rocket that hit the market as an IPO earlier this year. China is bigger and better in the market than America now and we have to give them a look. I think this stock deserves that look and would be a good addition to your portfolio in future. I like PZZA for the future. Papa John is not my favorite pizza, but he knows how to sell it and make us money in the stock market. It did split in the past year and I think it is time you pay him a visit...and I'm not talking buying a pizza, but lots of his stock. We must look at GD. General Dynamics is poised for a good future. Military contracts, Aerospace, surveillance equipment, naval control systems. I think you will be hard pressed to find better potential right now for steady growth and good dividends than General Dynamics. AAPL, probably one of my biggest successes in personally buying and sharing the information with you in my blog. And there is still room for growth. I think we are going to continue to see a lot of technology in the upcoming years. The technology era is not over yet. As far as technology stocks go, I think this is about as good as any you can find. I see more growth in the future. KMI is an Energy Sector stock that I think has a good chance of holding it's own until OPEC can get its shit together and quit bickering between themselves. Pays a nice dividend and I think you will find to be a good addition with time in your portfolio. CAT has long been at the top of the list of good stocks from a quality company. That is not changing. With over a 7% profit it is doing fine even though right now it has been hurt in the market with decreasing values on it's stock. That is why it makes CAT a good stock to buy, buy, buy. The price is down, profits are good, and it pays a nice dividend. Thus I have to recommend it as a good buy. We must look at some Healthcare Sector stocks. Most have done well with lighter losses than some other sectors. Lets first take a look at LLY. Eli Lily has long been a reputable company in the healthcare sector with making various pharmaceuticals. It has a good chart, good growth, good profit margin and pays a nice dividend. NVS also has to be looked at in this sector. I find it a little more volatile in the market, but overall has a better profit margin than LLY and a very nice dividend. CVS I feel is a little safer in the big 3 of Pharmacies. Walgreen (WAG) had a big stumble a year or so ago and is in recovery mode while Rite Aide (RAD) had a good run, fell down and has yet to recover. (I am buying RAD right now, fyi) CVS pays a nice little dividend. I like the growth chart. I like the fact they took cigarettes out of their stores and took a stand on that issue. But I do wish that profit margin was a little greater.
I do hope you find this information useful.
Gus S.
Disclaimer:
Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
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