The first two Lifelong Income Portfolio stocks have announced third-quarter results. The common theme: Low investor expectations embodied in low valuations are a major advantage when the spotlight is on.
Investors tend to be underweight Asia, including China. This major telecom is one way to better balance while buying into a company that has the current business and resources to grow as next-generation data networks are deployed.
On a price to book metric, the energy sector trades at a 50 percent discount to its 20-year average. That makes it the cheapest sector in the emerging markets universe. Our favorite company fits well with our Asia-focused investment thesis and current geopolitical trends.
Over the next few weeks, Lifelong Income portfolio members will deliver quarterly results. It’s likely to be quiet quarter for most. But several companies face potentially key developments that merit close watch.
What could take utility stocks down a peg? At the end of the day, a rotation out of dividend-paying stocks could pose the biggest risk. These realities mean that active investors should stay disciplined and be nimble; volatility creates pain—and opportunities.
Many investors and the financial media tend to get bogged down by volatility and “noise” in economic data releases. We prefer to look at a handful of big-picture indicators that have stood the test of time. And these indicators point to continued strength in the economy.
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