All our holdings in the Wealth Builders Portfolio have reported quarterly results, with most living up to or exceeding the market's expectations. We review the final five sets of earnings and revisit our investment theses for these names.
Our Lifelong Income Portfolio holdings continue to post strong numbers this earnings season. We review the qualitative and quantitative metric we use to evaluate the health of our positions and review each company's future prospects in light of their quarterly results.
Investors who think that developed markets can deliver strong returns if China’s economy collapses will be painfully off the mark. Fortunately, we don’t foresee a complete meltdown for China. The world’s quintessential emerging economy also includes pockets of opportunity for investors with a longer time horizon and the stomach for near-term volatility.
Although we prefer to pick individual stocks, closed-end equity funds offer one-stop exposure to specific sectors or security classes. Investors should focus on names helmed by high-quality management teams that have delivered superior returns in up and down markets.
After last year’s rally, European equities trade at elevated valuations; a strengthening EU economy and meaningful earnings growth will be the key to further appreciation. We take profits on a number of names we highlighted last fall and highlight our top three European stocks for the coming year.
With ample exposure to the booming auto industry in the Wealth Builders Portfolio, we book a gain of almost 47 percent in BorgWarner (NYSE: BWA), a leading manufacturer of turbochargers. We also highlight our favorite sectors for the coming months.
Although a company’s growth prospects and earnings will win out over the long haul, how quarterly results stack up to the market’s expectations will drive stock prices in the near term. The key is distinguishing a company’s temporary hiccups from a bigger malaise.
DISCLAIMER: Capitalist Times, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our website(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing Capitalist Times materials and websites, you agree to our Terms and Conditions of Use, available here including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our website.