Unlike the infamous Pets.com and other casualties of the tech bust in 2000--outfits that generated more hype than profits--many of today’s Internet companies have developed profitable business models and are here to stay. But this growth story is far from over, especially in China, the world’s quintessential emerging economy.
Since the Lifelong Income Portfolio launched on June 20, 2013, this basket of 10 stocks has generated an average total return of 4.9 percent--not a shabby result when you consider how out of favor dividend-paying stocks have been of late. As always, our focus remains on building sustainable wealth over the long term.
Over the past three months, our Wealth Builders Portfolio holdings have generated an average return of 9.8 percent. We expect this upside to continue; investors should regard any pullback as an opportunity to add to their positions in our favorite names.
Only a handful of industries stand to benefit directly from the gradual normalization of US monetary policy, a steady uptick in interest rates and rising equity prices. Life insurance companies will be one of the biggest winners in this environment.
The past five years have been a golden age for energy-focused master limited partnerships (MLP). Fueled by access to inexpensive capital, elevated oil prices and rising demand for infrastructure to support the US energy renaissance, MLPs have posted impressive distribution growth and delivered huge returns since the bull-market rally began in spring 2009. However, past performance isn't predictive of future results. And with many MLPs trading at sky-high valuations, investors will need to be selective and avoid value traps.
In the prevailing low-yield environment, income-starved investors have piled into dividend-paying US equities for their superior current returns relative to bonds, pushing valuations on many of these stocks to frothy levels. Last issue, we highlighted opportunities for investors to scoop up high-quality Canadian dividend payers at bargain prices. This time, we shift our focus even further afield, to some of our favorite income-generating names that trade on the Australian Stock Exchange.
Investor sentiment toward Europe remains subdued, despite signs of economic improvement and an uptick in insider buying of European equities. Here are our top stock picks to play this underappreciated recovery.
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