Hello Readers! Been a busy month with vacations, holidays etc. I am sure your holiday season was busy as well and hopefully a good one. But I still have been finding time to keep up with my portfolio and the market.
Many of you probably have a balance sheet that looks a lot like mine. Up and Down and looks like the jagged teeth of a shark. This is due to many reasons. One of which, it is the time of year for many companies to get honest. They are getting their year end figures reported and many companies are facing the fact as are we that many of these companies are not quite as well off as they had lead us to believe. Examples off the top of my head would be McDonald's (MCD) and Alibaba (BABA). McDonald's reported much worse earnings than they originally expected or at least lead us to believe. The year was so bad the CEO is retiring...forced. Alibaba's reports were much the same.
But how is the market doing overall from my point of view. As I expected would be the answer. The market closed at the end of 2014 right were I had predicted at the end of 2013. Was it an excellent year for the market as we had in 2013? No, absolutely not. But the market was up for the year 2014 and within the range of my expectations. Look forward to much the same kind of year for 2015. The market in most areas will continue to grow. McDonald's itself will most likely post another down year for 2015. So don't look for any growth or help there. McDonald's has saturated the global market and has little growth potential right now. Along with the fact that a new CEO from their European market will be coming to take over. With a new CEO coming on board it takes time to straighten out the messes of a predecessor. Don't look hard at oil and energy. It will be another disappointing year for this sector. OPEC and the oil producing nations of the Middle East will keep prices low and continue with their current strategies. Some Utility companies will continue to do well as will Tech stocks, Healthcare, and some Manufacturing. Expect to see slow growth in markets involving Real Estate. Good Mutual Fund holdings will still remain the safest place for 2015 as it was in 2014 verses Individual Stocks.
But some companies continue to thrive. Three companies this past week announced stock splits this week. But do your math and see that they meet the criteria before investing. I have explained my criteria and strategy for stock splits in several previous Blog postings. The first stock that is going to split is Visa (V) with a 4:1 split. Rollins (ROL) with a 3:2 split. Rollins is a service company dealing primarily in pest control. And Hanesbrand (HBI) with a 4:1 spit. I am sure you are familiar with Hanes underwear and clothing. Personally I never invest in a stock split of less than 2:1. So for me Rollins would not meet my criteria and I would look in another direction.
Hope my information has been useful to you today. There is money to be made in 2015. We just need to keep our eyes and ears open and find it.
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.
Friday, January 30, 2015
Monday, January 5, 2015
Let's Talk International and Emerging Market Funds
Today I wish to speak about International and Emerging Market Funds in your portfolio. Most any financial advisor will tell you that you should have a portion on your portfolio invested in International Funds. I tend to agree to some extent. But be careful!!! I feel International Funds carry the biggest risk but can have some of the largest rewards in your portfolio. Also be careful of the International Funds you get into as far as the country or countries they represent and the Fund itself and it's past performance history. Many of the International Funds have had poor performance records for the past several years or so. But when they hit they can hit big. When they fall, they can fall hard. Again research and pick your fund wisely.
Some funds you may wish to take a look would be CIVIX. This International fund incorporates many holdings from various different companies located throughout the world like China, England, Sweden, etc. Thus making this fund a little more appealing to me than just having holds from one country like many International funds represent. It also has posted some good numbers the past couple of years. The next fund I would look at is DEMIX. It has posted some decent numbers the past few year so I would give it a try.
Personally I tend to not invest in a single International or Emerging Market Fund. I buy individual stocks that represent other countries in my portfolio. Many of the stocks I own can be found as holdings in many International and Emerging Market funds. By doing it this way, I have exposed my portfolio to International holdings around the world that I liked, picked and chose and do not have to take all the other junk often found in many Emerging Market Funds. I get good quality International Stocks such as NVS, BABA, RDS-B, and others. So I do have exposure to the international community, but I have picked the ones I want, not the ones I have to take when investing in a Fund. From those three examples Sweden, China and the Netherlands are represented and again that is just a few stocks that give me the kind of international exposure I want for my portfolio.
Regardless of how you choose to do it, with a International or Emerging Market Mutual Fund or with the purchase of Individual Stocks you should have these types of holdings and exposure in your personal portfolio.
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.
Some funds you may wish to take a look would be CIVIX. This International fund incorporates many holdings from various different companies located throughout the world like China, England, Sweden, etc. Thus making this fund a little more appealing to me than just having holds from one country like many International funds represent. It also has posted some good numbers the past couple of years. The next fund I would look at is DEMIX. It has posted some decent numbers the past few year so I would give it a try.
Personally I tend to not invest in a single International or Emerging Market Fund. I buy individual stocks that represent other countries in my portfolio. Many of the stocks I own can be found as holdings in many International and Emerging Market funds. By doing it this way, I have exposed my portfolio to International holdings around the world that I liked, picked and chose and do not have to take all the other junk often found in many Emerging Market Funds. I get good quality International Stocks such as NVS, BABA, RDS-B, and others. So I do have exposure to the international community, but I have picked the ones I want, not the ones I have to take when investing in a Fund. From those three examples Sweden, China and the Netherlands are represented and again that is just a few stocks that give me the kind of international exposure I want for my portfolio.
Regardless of how you choose to do it, with a International or Emerging Market Mutual Fund or with the purchase of Individual Stocks you should have these types of holdings and exposure in your personal portfolio.
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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