This weekend I had a friend contact me and she wished to ask some questions about getting started in investing and beginning her first ever portfolio. GREAT for her. Definitely the right step towards her short and long term goals and saving for that day when she wishes to retire. Of course this being the first time for her to start investing and having little knowledge I advised her we had to start first focusing a good base and foundation to begin her portfolio. That is the first place where every new portfolio must begin.
Before starting that first step of building a foundation some questions need to be answered. Based on the answers will help determine what kind of account you need to start in your portfolio. The most significant questions are; Do you have a 401K or 403B plan at work? Does your employer match any contributions you make to your 401K or 403B plan? Do you plan to retire at age 62, 65, or 70 or do you plan to retire early before the age of 62? These are very significant questions that must be asked and must be thought about when setting up you first account in your Portfolio. Why? Because of how you are going to be able to manipulate you account in your best interest in the future, especially when you get to the point of wishing to retire. Also, you want flexibility in your account that is going to work to your advantage. For the sake of privacy, lets call my friend (Tammy).
Tammy currently works a full time job. Here employer does offer a 401K plan, but does not match contribution. Should Tammy continue to have money taken out of each check and put in her 401K plan. Why? Because money taken and put in her 401K from her check is done before taxes. Thus reducing the taxes on each of her paychecks and the money she puts into her 401K is not taxed at all. Well not until she retires or starts drawing it out in the future. So yes, even though the employer does not match any of her contributions it is in Tammy's best interest to continue to use her employers 401K plan as she has always done. So now we know Tammy has a 401K with her employer that does not match, how is this going to help her portfolio in the future when her 401K plan is with her employer and her new portfolio is with Financial Company XYZ (Edward Jones, JP Morgan, LPL, etc.). Good question by Tammy. That as why we had to ask all those beginning questions to find out your status so the right account can be set up for Tammy that is in her best interest. Based on the questions asked I felt that a Traditional IRA or Roth IRA account would be best for Tammy to start out. Either of these accounts will give her significant Tax benefits and will give her a lot of flexibility between her 401K account with her employer and with her Financial Company XYZ. But which account is best for Tammy and for you to start out with as the first kind of account in your portfolio? That draws more questions that need to be answered.
If you do not have a 401K or 403B plan with your employer and you are contributing money to your portfolio via cash or check each time you get paid then I feel a Brokerage Account is best. The reason for this is that you have already paid taxes on this money and now sliding it into a Roth IRA or Traditional IRA no longer holds as much advantage and takes away from you some flexibility in the future. But we know Tammy has a 401K or 403B with her employer which gives her a tax advantage even though this employer does not match contributions. So what should Tammy do? Her best choice in this case is to open either a Traditional IRA or Roth IRA account in her new portfolio. But how do you decide which one? Here is my criteria. If you feel in the future you will retire before age 62 and are not in poor health of which you may become disabled and not able to work in the future, then I would suggest a Traditional IRA for Tammy. If on the other hand, Tammy has a goal that she is going to contribute a lot of money towards her retirement or she is in poor health and may have to retire early on disability, then the Roth IRA is the best choice. In my friend Tammy's situation I know she may with to retire early some day or at age 62 which is early for females. Sorry, not trying to discriminate, but that is a subject for another Blog posting. Thus the Roth IRA may not be good for Tammy, as you must be employed in order to make a contribution to a Roth IRA. If she retires early as she wishes to do in the future she cannot add money to the account and only gets to add to the account dividends that are acquired by her previous investments (mutual funds and stocks).
So now that we have determined in this case that opening a Traditional IRA as her first account in her portfolio with her financial advisor, XYZ company lets look and see what Tammy can do in the future with her new account. First think Tammy needs to do is have money to open her new Traditional IRA account. Where does Tammy get the money when it is all tied up into her 401K plan? Easy answer, she gets it from her 401K that she has with her employer. She has her financial advisor open up a Traditional IRA account with the company he represents. Lets say it is Edward Jones. She talks to her financial advisor at Edward Jones, opens up a Traditional IRA and asks him to submit paperwork to transfer money from her 401K with her employer to her new Traditional IRA account with Edward Jones. This is a tax free move with no financial consequences to Tammy as she is moving money from one 401K plan to essentially another. So why should Tammy move money like this? A great question. Because of flexibility and the ability to in most cases make more money in her new account than she was making in her 401K. Tammy and her Financial Advisor now get to pick and chose among thousands of investment opportunities instead of just a very few offered by her 401K plan that may not provide Tammy with the best results in the market place. Tammy should continue to transfer money on a periotic bases as her 401K grows. Build the 401K up and then once or twice a year transfer at least half to three quarters of that money to her Edward Jones, Traditional IRA account and invest it. This method will absolutely work best for Tammy and she will soon see her money growing much faster over time than if she left it all in her 401K account with her employer.
Now what should Tammy invest her money in once she has it transferred into her Traditional IRA account with Edward Jones. Well, different financial advisors will tell you a host of different things. But I have found each financial advisor will give advise on things they are most familiar with. If they are most familiar with Franklin products they will suggest Franklin, if they are most familiar with JP Morgan Chase products that is what they will suggest. That is also why Tammy should seek information from her friends and see what kinds of good balanced mutual funds work for them and then Tammy needs to research and look at them herself and see what looks good to her. Or have her new financial advisor bring these funds up on his/her computer and advise her which the computer says would be in her best interest. Often you will surprise your financial advisor as I have done mine in the past on many occasions. My personal selection for Tammy was to AMECX and PRHSX. To divide her money equally to begin her base in her portfolio. I think Tammy will find much stability and moderate returns with AMECX and will enjoy a little deeper dividend rate of return with PRHSX, which is a Healthcare Mutual Fund and guys, healthcare is going to always be here and this fund is the best performing of all healthcare funds and has been for many years.
I wish to talk about one more thing because I feel this is very important. What if Tammy gets a raise at work or gets a bonus which both could very well happen for her. My advise to Tammy is very simple and very much to her advantage and this applies to EVERYONE! Take that bonus and take the money you get in your raise and put it in your Traditional IRA or 401K plan. If you get $50 extra dollars on your check each pay period due to a raise, put $50.00 extra dollars in your employer 401K plan each pay period and live off the same money you were living off of before. If your employer gives you a $100 bonus for a job well done. Take that money directly to your financial advisor and have it invested into your account. If you get a $100 Bonus check and you go out and blow it all on dinner and drinks it is gone and never to be seen again. Invest it and that $100 may make you hundreds or even thousands times that in the future.
I advised Tammy, when she got these things done and she had her 401K with her employer built back up again get in touch with me and we would move to the next step.
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.
Monday, February 23, 2015
Saturday, February 14, 2015
Sorry, But I Told You So!
I hope you read my last Blog entry on February 11, 2015 as I told you to SELL Alibaba (BABA). This stock was starting to smell like a rotten fish and I dumped it from my portfolio and advised here in my Blog that you do the same. For those of you taking my advise I am sure you are thanking me now. For those of you that did not, you are probably cursing yourself for not listening.
Alibaba (BABA) found it self in trouble with the China's State Administration for Industry and Commerce, or SAIC. Then owner Jack Ma announces a multimillion dollar investment to support Jackie Chan for a new movie. These suspicious things were quickly noticed by the United States and receiving a series of complaints and noted lawsuits regarding Alibaba's website. The SEC announced an investigation into Alibaba and the stock tumbled 4.4% I called this one and I got out in time. I hope you did too.
https://news.yahoo.com/alibaba-says-received-u-sec-request-information-220205580--finance.html?bcmt=comments-postbox
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.
Alibaba (BABA) found it self in trouble with the China's State Administration for Industry and Commerce, or SAIC. Then owner Jack Ma announces a multimillion dollar investment to support Jackie Chan for a new movie. These suspicious things were quickly noticed by the United States and receiving a series of complaints and noted lawsuits regarding Alibaba's website. The SEC announced an investigation into Alibaba and the stock tumbled 4.4% I called this one and I got out in time. I hope you did too.
https://news.yahoo.com/alibaba-says-received-u-sec-request-information-220205580--finance.html?bcmt=comments-postbox
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.
Wednesday, February 11, 2015
More Individual Stock Movers
There comes a time in our life that you just have to let go. In the financial world it is not always forever. But we need to talk about some more movers in the market. Good and bad movers. Let me see if I can find some good advise for you about some more individual stocks moving in the stock market and help you make some decisions as to some things to look at or look the other way.
First lets talk about Alibaba (BABA). When this stock came out on the market as an IPO I was all in. Glad I did not end up betting the farm as I have been met with extreme disappointment. I thought in the beginning that this was "THE STOCK" to add to your portfolio. But Jack Ma has shown he is a fool with money. He has found himself in a plague of controversy, in trouble with the Chinese government and just announced he is going to be backing Jackie Chan and pouring in millions to support a movie for him. Sorry, but it is time to close the door on Alibaba. For these reasons I must suggest to you what I did. SELL!!! With the kinds of problems and issues this company is facing and the owner making extremely poor multimillion dollar decisions it is time to look elsewhere for a better stock that pays dividends...which Alibaba does not.
Lets talk Coke vs. Pepsi: Coca Cola (KO), sorry but Pepsi wins in the 4th Quarter and is being rewarded. Pepsi sores $2.01 per share today due to beating 4th Quarter earning projections. Since Coke split back in August 2012 it failed to give their shareholders the expectations of any kind of significant growth during the wonder year or 2013 or the average year of 2014. While PepsiCo (PEP) continues to by far out preform Coca Cola (KO) in the market. We have no other choice but to put Coca Cola (KO) on ice as a HOLD or Sell, while we have to give PepsiCo (PEP) a BUY. Yes, I am a torn man. I drink Coke and BUY Pepsi stock..."This is not my first time at the rodeo"! You might be interested in this article. http://www.nytimes.com/2015/02/11/business/coca-cola-q4-earnings.html?_r=0
Lets look at HSBC Holdings (HSBC) What a fire they have under their ass. The UK and United States governments on after their ass over taxes. HSBC is a financial institution from the UK that literally has their fingers in about everything. They do car loans, personal loans, business loans, credit and debit cards and about everything else you can imagine. They are now being accused of tax fraud, helping customers to tax dodge, etc. With both the UK and US riding their ass this is a company to stay clear of at this time. HSBC has seen their stock fall and tumble and has never been able to fully recover since 2008. With these problems looking over their head and poor stock performance this is a definite SELL! And do not be buying in. Other sources will find you the profits in the market you seek.
Now lets take a look at Wal-Mart (WMT) and Target (TGT). The Northern Lights of Aurora Borealis are not kind to these big retailers. Target has just announced it is pulling out of all 133 of it's stores in Canada after a short 2 year stent and takes a hit in the market. While Wal-Mart announces it is going to expand its stores in Canada and takes a tumble too. Okay, I like anything that makes me money. But I think these two giants are in for a cool off for awhile. Target has been performing quite well in the market but with this announcement I want to see where the chips fall first before I advise anyone putting money into their stock. Wal-Mart has long been stagnant for the most part. They have saturated the market to the point their is little for them to saturate anymore. Thus why Wal-Mart has not split since 1999, while in the 1970's, 1980's and early 1990's it was splitting every time you sneezed. Wal-Mart's big money days in the market are over. Can they still show profits? Absolutely, but not like those days of past. Their dividends are meager in my opinion based on the profit and market share of the company. Wal-Mart is driving a short highway off the cliff of the DOW Industries and I easily see it being replaces in the next three to five years. Wal-Mart and Target are both a HOLD. Now is not the time to get in. Want to be pointed in a better direction, then head over to TJ MAX (TJX) if you are looking to BUY
Now lets talk about an old standby of mine Rite-Aid (RAD). I personally owned this stock and saw some things in the past that I did not particularly like. Mainly a lack of aggression and their deals with GNC Holding (GNC). So I took a nice profit several years ago and got out and was happy to have done so when it Rite-Aid went on to take a big dip. But it is never bad to revisit a stock when it is going to make you money. I revisited Rite-Aid back in September 2014 and started taking my dividends from other stocks and reinvesting it in Rite-Aid. With todays announcement I think I may have done the right thing. Rite-Aid is buying EnvisionRx for $2 Billion dollars and is finally taking aim at CVS and Wal-Greens as a major player in the pharmaceutical market. Watch this small cheap stock take another jump of at least $1.00 per share in the near future. With Jim Cramer's plug today it could possibly be more. Rite-Aid is a definite BUY
Eaton Vance (EV) is an asset management and also provides investment management and counseling services to both institutions and individuals. Easton Vance has been on a nice ride as of late. They continue to far out preform the DOW and are up 20% since October 2014. They have a nice little dividend and they are a Wells Fargo approved company. I have them in my portfolio and I think you should too. BUY
Hope you have enjoyed this Blog posting and find some good information it that will help you and your 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.
First lets talk about Alibaba (BABA). When this stock came out on the market as an IPO I was all in. Glad I did not end up betting the farm as I have been met with extreme disappointment. I thought in the beginning that this was "THE STOCK" to add to your portfolio. But Jack Ma has shown he is a fool with money. He has found himself in a plague of controversy, in trouble with the Chinese government and just announced he is going to be backing Jackie Chan and pouring in millions to support a movie for him. Sorry, but it is time to close the door on Alibaba. For these reasons I must suggest to you what I did. SELL!!! With the kinds of problems and issues this company is facing and the owner making extremely poor multimillion dollar decisions it is time to look elsewhere for a better stock that pays dividends...which Alibaba does not.
Lets talk Coke vs. Pepsi: Coca Cola (KO), sorry but Pepsi wins in the 4th Quarter and is being rewarded. Pepsi sores $2.01 per share today due to beating 4th Quarter earning projections. Since Coke split back in August 2012 it failed to give their shareholders the expectations of any kind of significant growth during the wonder year or 2013 or the average year of 2014. While PepsiCo (PEP) continues to by far out preform Coca Cola (KO) in the market. We have no other choice but to put Coca Cola (KO) on ice as a HOLD or Sell, while we have to give PepsiCo (PEP) a BUY. Yes, I am a torn man. I drink Coke and BUY Pepsi stock..."This is not my first time at the rodeo"! You might be interested in this article. http://www.nytimes.com/2015/02/11/business/coca-cola-q4-earnings.html?_r=0
Lets look at HSBC Holdings (HSBC) What a fire they have under their ass. The UK and United States governments on after their ass over taxes. HSBC is a financial institution from the UK that literally has their fingers in about everything. They do car loans, personal loans, business loans, credit and debit cards and about everything else you can imagine. They are now being accused of tax fraud, helping customers to tax dodge, etc. With both the UK and US riding their ass this is a company to stay clear of at this time. HSBC has seen their stock fall and tumble and has never been able to fully recover since 2008. With these problems looking over their head and poor stock performance this is a definite SELL! And do not be buying in. Other sources will find you the profits in the market you seek.
Now lets take a look at Wal-Mart (WMT) and Target (TGT). The Northern Lights of Aurora Borealis are not kind to these big retailers. Target has just announced it is pulling out of all 133 of it's stores in Canada after a short 2 year stent and takes a hit in the market. While Wal-Mart announces it is going to expand its stores in Canada and takes a tumble too. Okay, I like anything that makes me money. But I think these two giants are in for a cool off for awhile. Target has been performing quite well in the market but with this announcement I want to see where the chips fall first before I advise anyone putting money into their stock. Wal-Mart has long been stagnant for the most part. They have saturated the market to the point their is little for them to saturate anymore. Thus why Wal-Mart has not split since 1999, while in the 1970's, 1980's and early 1990's it was splitting every time you sneezed. Wal-Mart's big money days in the market are over. Can they still show profits? Absolutely, but not like those days of past. Their dividends are meager in my opinion based on the profit and market share of the company. Wal-Mart is driving a short highway off the cliff of the DOW Industries and I easily see it being replaces in the next three to five years. Wal-Mart and Target are both a HOLD. Now is not the time to get in. Want to be pointed in a better direction, then head over to TJ MAX (TJX) if you are looking to BUY
Now lets talk about an old standby of mine Rite-Aid (RAD). I personally owned this stock and saw some things in the past that I did not particularly like. Mainly a lack of aggression and their deals with GNC Holding (GNC). So I took a nice profit several years ago and got out and was happy to have done so when it Rite-Aid went on to take a big dip. But it is never bad to revisit a stock when it is going to make you money. I revisited Rite-Aid back in September 2014 and started taking my dividends from other stocks and reinvesting it in Rite-Aid. With todays announcement I think I may have done the right thing. Rite-Aid is buying EnvisionRx for $2 Billion dollars and is finally taking aim at CVS and Wal-Greens as a major player in the pharmaceutical market. Watch this small cheap stock take another jump of at least $1.00 per share in the near future. With Jim Cramer's plug today it could possibly be more. Rite-Aid is a definite BUY
Eaton Vance (EV) is an asset management and also provides investment management and counseling services to both institutions and individuals. Easton Vance has been on a nice ride as of late. They continue to far out preform the DOW and are up 20% since October 2014. They have a nice little dividend and they are a Wells Fargo approved company. I have them in my portfolio and I think you should too. BUY
Hope you have enjoyed this Blog posting and find some good information it that will help you and your 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.
Friday, February 6, 2015
Stock Movers
Hello everyone! Today I am going to take a look at some stocks with you that have been moving in the market. The DOW is now approaching 18,000 again and we have many stocks that have been on the rebound and others that have still not found their footing.
First I want to take a look at stock that is in the dumps and can't find a way out and continues to make bad and ridiculous choices and decisions. That stock is International Business Machines (IBM). They have taken a 16% nose dive since October 2014. They can't seem to find a way to keep pace with their competitors and then made the ridiculous decision a few days ago to reinstate bonuses for their top level executives! They are losing money hand over fist and are reinstating bonuses for their top level executives? Tell me who is greedy here? I don't think it is very difficult to answer this question and they seem to have taken an attitude of we don't care if our company makes money or not, but we sure as hell want to make sure our pockets are lined. My suggestion, stay clear of (IBM) and find a better place to put your money. This company is way out of the loop and has been struggling for quite a while to compete with their competitors. If you currently own the stock I have to suggest HOLD and take your dividends and hang on for a very bumpy ride.
Now lets talk about the God of Pizza, Papa John's (PZZA). I had my finger on the buy button when they split in December 2013 and now I could shoot myself that I didn't. Yet I did recommend here in my Blog a couple of times for you to invest. If you took advantage of the recommendation I gave you, you should thank me a hundred times over. If you got in on the 2:1 split and hung on for the ride you are now killing it with over a 50% increase since the split. Now I feel like a fool for not taking my own advise and practicing what I preached to you. I am not big into putting restaurant or food companies into my portfolio. But with this kind of performance and knowing the long history of this company knowing how to make money I still must recommend it as a BUY if you are looking for a good food based company for your portfolio.
Another big mover is Apple (AAPL). I preached and gave you multiple advise in my Blog to take the 7:1 split back in June 2014. This one I did practice what I preached to you and bought prior to the split. Apple is up 50% since the split. I hope your portfolio took a good turn upward with this one. Apple just knows how to make money. It continues to know what the consumer wants and is looking for. It has fresh and innovative ideas on the table that they are working on all the time. This is not a stagnate company. They pay a nice dividend. I can't help but to still recommend it as a BUY!
I continue to advise that this is NOT the time to be investing in crude oil based companies like Exxon, Royal Dutch Shell or ConocoPhillips etc.. But don't stay away from this one, Ashland (ASH). You may best know Ashland for it's Valvoline line of car oils and products. But what I like about Ashland is that it does not have all its eggs in one basket. It is very diverse with many product lines that are not oil and crude based. Thus it can better absorb the current oil crisis of crude being today at $51.66 per barrel. Ashland is currently up 19% since October 2014. Ashland pays a nice dividend and I like its charts and summaries. I would recommend this one as a BUY.
What about Microsoft (MSFT)? I have the same question. Microsoft seems to be in reset mode or something. They are having changes at some top executive levels and really have not given the consumer anything great and wonderful in a while to help them boost profits and growth. Still at that Microsoft is only $8.00 off its 52 week high. But what bothers me is I see nothing great and wonderful on the horizon for Microsoft or their consumers. I think you will be seeing much the same out of Microsoft for a while until that find the magic product in the achieves of their development room. With Michael Gough as the newly instated vice president of design lets hope he has some bright ideas and can get the batteries recharged. I recommend with a 7% decrease in the value of the stock to either SELL or HOLD. If you sell there are lots more places you can make that 7% decrease back very easily and quickly. If you feel you need to hold, sit back and collect your dividends and be prepared for a long wait to see anything exciting.
Here is a good stock we must talk about and that is Minnesota Mining and Manufacturing (MMM). This stock continues to preform well and has been at or near its 52 week high for a month or so. In the past three months 3M has been up over 20%. This company has had lots personal significance to me and my family. They are a good company of which their innovations and designs for new consumer products is never ending, making them a leader in their sector. They are a Wells Fargo advised and recommend stock as well as mine. Jim Cramer gave them a good plug today due to their presence in the European market and predicts good things for them and shareholders in the future. 3M is not just your Post-It Note company, they are very involved with products in healthcare, healthcare delivery systems, renewable energy components, office supplies, housewares supplies, and the list goes on and on. If you are looking for a solid place to invest your money with a solid company and that pays a nice dividend, the I have to recommend (MMM) as a STRONG BUY.
Here is a stock I have not talked much about before and that is Air Products and Chemicals (APD). This stock has been having a good run and good growth for quite a while now. Pays a nice dividend and is up over 22% since October 2014. This chemical company is very diverse and far and beyond out preformed the DOW. They just reported a strong first quarter and it looks like they are going to continue their march up the ladder. They pay a nice dividend and is a Wells Fargo recommended and approved stock pick. Jim Cramer also recently gave it a good plug as a BUY BUY BUY...and that does not mean goodbye see you later. I agree with this one. (APD) is definitely a BUY for your portfolio.
Are you an F150 kind of guy? Then lets talk about Ford (F). Ford stock has risen 15% in the past three months. And what I like about Ford is what I am seeing for the future. It's global presence in the market is expanding in China and Europe and they have just completed construction on a new factory in Spain. The gas consumption of their vehicles is increasingly going down, which is good for the consumer and production is up over 14% while recently raising salaries for hundreds of workers. Ford is worth a little attention to your portfolio and I recommend it as a BUY in moderation.
Jim Cramer gave a plug today as a BUY for General Motors (GM). Jim Cramer is my go to guru but on this one I am afraid I am going to have to disagree. If you are looking for an auto maker to add to your portfolio I would much rather you look towards Ford or Fiat Chrysler. But I caution that all automotive stocks have significantly under performed compared to the DOW and such holdings should be in moderation. General Motors has found itself for the past couple of years plagued with problems. I think this is just the tip of the iceberg. After their bailout by the Government they wanted to get out from under this debt so badly that they began using what seems to be inferior, cheaper, and less reliable products in their vehicle lines which down the road failed, caused significant death and injury, they elected to hide, be dishonest, ignore the facts and put profits ahead of the safety of their consumers. They have found themselves in and facing more lawsuits, have lost consumer confidence and have done little to remedy the issues and problems except with throwing money towards lawsuits to keep the noise down, made some apologies, and threw a few short term Band-Aids on the problems of which they have been faced. Sorry, I cannot get on board with recommending this stock at this time. They have too many problems and issues to fix and their growth charts are horrifying. Stay away. If you own General Motors I suggest this as a STRONG SELL! You have a lot better money making opportunities than this one out there.
No I will not forget you Mutual Fund holders. They too are a very significant and important part of any portfolio. So I am going to start with a Mutual Fund I have been advising ever since I started my Blog over a year ago. Lets talk about T. Rowe Price Health Sciences (PRHSX). If you took my advice I know you are thanking me now. Talk about hot hot hot if you bought bought bought! This mutual fund is currently up Year To Date, that's since January 1, 2015 4.31%. If you failed to take my advise and pass on this mutual fund, in 2014 you missed a 31.94% total return. In 2013 you missed out on a 51.40% total return. Can't make that in a passbook savings or CD for sure. Okay guys, let me make this very simple for you. As long as there are people there will be sick people needing all kinds of healthcare. This is a mutual fund you want to be in. This fund has a Morning Star Rating of 5 Stars. I would be hard pressed to give you a better recommendation on a mutual fund than I can give you on this one. STRONG BUY!
Good MidCap Fund I am going to point you in the direction in is Principle MidCap A (PEMGX). This is another fund with a Morning Star Rating of 5 Stars. MidCap funds should be included in any balanced portfolio. Year to Date this fund is down 2.22%, but do not let that fool you. We have a long way to go before the end of the year and the market will have an average to slightly about average growth year. For 2014 this fund increased 12.33% in Total Returns. This fund has a good and steady growth history. Personally, this is one of the few funds I have found within the Principle Financial Group of mutual funds that I like and feel comfortable to recommend. I have to say this one is definitely a BUY.
We all love Large Cap Mutual Funds, especially when the market is bullish. They are mainly composed of the big name companies we know and recognize. So for a good Large Cap fund I am going to point you in the direction of Oakmark (OAKMX). The manager of this fund Kevin Grant has been in place for 14 years managing this fund and seems to have a very good track record. I personally do not tend to invest in mutual funds unless the manager has been in place for at least 5 years. Year to Date this fund is down 4.43%, but again we have a long way to go before the end of the year. In 2014 this fund brought in a Total Return of 11.51% and last year was not a really good year by any means for anyone and was average at best. Oakmark is a solid Morning Star Rating of 4 Stars. I can give this one a recommend BUY.
Lets look at a balanced fund Putman Dynamic Asset (PAEAX). It is a MUST HAVE in everyone's portfolio to have a Balanced Mutual Fund or two. I like at least two. American Funds have some really good ones too that your financial advisor can advise you about. But lets talk Putman. Morning Star Rating of 3 Stars. Mr. Kutin the fund manager has only been in place for three years, but three very successful years. I like the balance of this fund and Kutin has thus far proven to be a good manager of the fund. This is the kind of base fund that everyone needs to have in their portfolio regardless of with what company so long as it is a good performer. You have a base of stocks and bonds both in these types of accounts which helps make them less volatile. I would recommend this fund and other good performers like it as a good place to start building your base in your portfolio. BUY.
I hope you have enjoyed this review of many various individual stocks and mutual funds and that you may have gotten some good ideas, suggestions and information.
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.
First I want to take a look at stock that is in the dumps and can't find a way out and continues to make bad and ridiculous choices and decisions. That stock is International Business Machines (IBM). They have taken a 16% nose dive since October 2014. They can't seem to find a way to keep pace with their competitors and then made the ridiculous decision a few days ago to reinstate bonuses for their top level executives! They are losing money hand over fist and are reinstating bonuses for their top level executives? Tell me who is greedy here? I don't think it is very difficult to answer this question and they seem to have taken an attitude of we don't care if our company makes money or not, but we sure as hell want to make sure our pockets are lined. My suggestion, stay clear of (IBM) and find a better place to put your money. This company is way out of the loop and has been struggling for quite a while to compete with their competitors. If you currently own the stock I have to suggest HOLD and take your dividends and hang on for a very bumpy ride.
Now lets talk about the God of Pizza, Papa John's (PZZA). I had my finger on the buy button when they split in December 2013 and now I could shoot myself that I didn't. Yet I did recommend here in my Blog a couple of times for you to invest. If you took advantage of the recommendation I gave you, you should thank me a hundred times over. If you got in on the 2:1 split and hung on for the ride you are now killing it with over a 50% increase since the split. Now I feel like a fool for not taking my own advise and practicing what I preached to you. I am not big into putting restaurant or food companies into my portfolio. But with this kind of performance and knowing the long history of this company knowing how to make money I still must recommend it as a BUY if you are looking for a good food based company for your portfolio.
Another big mover is Apple (AAPL). I preached and gave you multiple advise in my Blog to take the 7:1 split back in June 2014. This one I did practice what I preached to you and bought prior to the split. Apple is up 50% since the split. I hope your portfolio took a good turn upward with this one. Apple just knows how to make money. It continues to know what the consumer wants and is looking for. It has fresh and innovative ideas on the table that they are working on all the time. This is not a stagnate company. They pay a nice dividend. I can't help but to still recommend it as a BUY!
I continue to advise that this is NOT the time to be investing in crude oil based companies like Exxon, Royal Dutch Shell or ConocoPhillips etc.. But don't stay away from this one, Ashland (ASH). You may best know Ashland for it's Valvoline line of car oils and products. But what I like about Ashland is that it does not have all its eggs in one basket. It is very diverse with many product lines that are not oil and crude based. Thus it can better absorb the current oil crisis of crude being today at $51.66 per barrel. Ashland is currently up 19% since October 2014. Ashland pays a nice dividend and I like its charts and summaries. I would recommend this one as a BUY.
What about Microsoft (MSFT)? I have the same question. Microsoft seems to be in reset mode or something. They are having changes at some top executive levels and really have not given the consumer anything great and wonderful in a while to help them boost profits and growth. Still at that Microsoft is only $8.00 off its 52 week high. But what bothers me is I see nothing great and wonderful on the horizon for Microsoft or their consumers. I think you will be seeing much the same out of Microsoft for a while until that find the magic product in the achieves of their development room. With Michael Gough as the newly instated vice president of design lets hope he has some bright ideas and can get the batteries recharged. I recommend with a 7% decrease in the value of the stock to either SELL or HOLD. If you sell there are lots more places you can make that 7% decrease back very easily and quickly. If you feel you need to hold, sit back and collect your dividends and be prepared for a long wait to see anything exciting.
Here is a good stock we must talk about and that is Minnesota Mining and Manufacturing (MMM). This stock continues to preform well and has been at or near its 52 week high for a month or so. In the past three months 3M has been up over 20%. This company has had lots personal significance to me and my family. They are a good company of which their innovations and designs for new consumer products is never ending, making them a leader in their sector. They are a Wells Fargo advised and recommend stock as well as mine. Jim Cramer gave them a good plug today due to their presence in the European market and predicts good things for them and shareholders in the future. 3M is not just your Post-It Note company, they are very involved with products in healthcare, healthcare delivery systems, renewable energy components, office supplies, housewares supplies, and the list goes on and on. If you are looking for a solid place to invest your money with a solid company and that pays a nice dividend, the I have to recommend (MMM) as a STRONG BUY.
Here is a stock I have not talked much about before and that is Air Products and Chemicals (APD). This stock has been having a good run and good growth for quite a while now. Pays a nice dividend and is up over 22% since October 2014. This chemical company is very diverse and far and beyond out preformed the DOW. They just reported a strong first quarter and it looks like they are going to continue their march up the ladder. They pay a nice dividend and is a Wells Fargo recommended and approved stock pick. Jim Cramer also recently gave it a good plug as a BUY BUY BUY...and that does not mean goodbye see you later. I agree with this one. (APD) is definitely a BUY for your portfolio.
Are you an F150 kind of guy? Then lets talk about Ford (F). Ford stock has risen 15% in the past three months. And what I like about Ford is what I am seeing for the future. It's global presence in the market is expanding in China and Europe and they have just completed construction on a new factory in Spain. The gas consumption of their vehicles is increasingly going down, which is good for the consumer and production is up over 14% while recently raising salaries for hundreds of workers. Ford is worth a little attention to your portfolio and I recommend it as a BUY in moderation.
Jim Cramer gave a plug today as a BUY for General Motors (GM). Jim Cramer is my go to guru but on this one I am afraid I am going to have to disagree. If you are looking for an auto maker to add to your portfolio I would much rather you look towards Ford or Fiat Chrysler. But I caution that all automotive stocks have significantly under performed compared to the DOW and such holdings should be in moderation. General Motors has found itself for the past couple of years plagued with problems. I think this is just the tip of the iceberg. After their bailout by the Government they wanted to get out from under this debt so badly that they began using what seems to be inferior, cheaper, and less reliable products in their vehicle lines which down the road failed, caused significant death and injury, they elected to hide, be dishonest, ignore the facts and put profits ahead of the safety of their consumers. They have found themselves in and facing more lawsuits, have lost consumer confidence and have done little to remedy the issues and problems except with throwing money towards lawsuits to keep the noise down, made some apologies, and threw a few short term Band-Aids on the problems of which they have been faced. Sorry, I cannot get on board with recommending this stock at this time. They have too many problems and issues to fix and their growth charts are horrifying. Stay away. If you own General Motors I suggest this as a STRONG SELL! You have a lot better money making opportunities than this one out there.
No I will not forget you Mutual Fund holders. They too are a very significant and important part of any portfolio. So I am going to start with a Mutual Fund I have been advising ever since I started my Blog over a year ago. Lets talk about T. Rowe Price Health Sciences (PRHSX). If you took my advice I know you are thanking me now. Talk about hot hot hot if you bought bought bought! This mutual fund is currently up Year To Date, that's since January 1, 2015 4.31%. If you failed to take my advise and pass on this mutual fund, in 2014 you missed a 31.94% total return. In 2013 you missed out on a 51.40% total return. Can't make that in a passbook savings or CD for sure. Okay guys, let me make this very simple for you. As long as there are people there will be sick people needing all kinds of healthcare. This is a mutual fund you want to be in. This fund has a Morning Star Rating of 5 Stars. I would be hard pressed to give you a better recommendation on a mutual fund than I can give you on this one. STRONG BUY!
Good MidCap Fund I am going to point you in the direction in is Principle MidCap A (PEMGX). This is another fund with a Morning Star Rating of 5 Stars. MidCap funds should be included in any balanced portfolio. Year to Date this fund is down 2.22%, but do not let that fool you. We have a long way to go before the end of the year and the market will have an average to slightly about average growth year. For 2014 this fund increased 12.33% in Total Returns. This fund has a good and steady growth history. Personally, this is one of the few funds I have found within the Principle Financial Group of mutual funds that I like and feel comfortable to recommend. I have to say this one is definitely a BUY.
We all love Large Cap Mutual Funds, especially when the market is bullish. They are mainly composed of the big name companies we know and recognize. So for a good Large Cap fund I am going to point you in the direction of Oakmark (OAKMX). The manager of this fund Kevin Grant has been in place for 14 years managing this fund and seems to have a very good track record. I personally do not tend to invest in mutual funds unless the manager has been in place for at least 5 years. Year to Date this fund is down 4.43%, but again we have a long way to go before the end of the year. In 2014 this fund brought in a Total Return of 11.51% and last year was not a really good year by any means for anyone and was average at best. Oakmark is a solid Morning Star Rating of 4 Stars. I can give this one a recommend BUY.
Lets look at a balanced fund Putman Dynamic Asset (PAEAX). It is a MUST HAVE in everyone's portfolio to have a Balanced Mutual Fund or two. I like at least two. American Funds have some really good ones too that your financial advisor can advise you about. But lets talk Putman. Morning Star Rating of 3 Stars. Mr. Kutin the fund manager has only been in place for three years, but three very successful years. I like the balance of this fund and Kutin has thus far proven to be a good manager of the fund. This is the kind of base fund that everyone needs to have in their portfolio regardless of with what company so long as it is a good performer. You have a base of stocks and bonds both in these types of accounts which helps make them less volatile. I would recommend this fund and other good performers like it as a good place to start building your base in your portfolio. BUY.
I hope you have enjoyed this review of many various individual stocks and mutual funds and that you may have gotten some good ideas, suggestions and information.
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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