At the end of the day, cryptocurrencies are all about the technology and science involved, which needs to be respected. But when it comes to bitcoin, people will realize that there are few people who actually spend them, meaning it won’t become the payment system its creator envisaged.
With the market bull running since 2009, investors should start adding gold to their portfolios. Keep in mind that gold gains in value during times of geopolitical uncertainty, when investors worry about monetary issues or when the stock market experiences a sharp selloff.
The near- to intermediate-term future looks bright for utility stocks and the sector’s prospects for earnings and dividend growth. However, with the Dow Jones Utility Average making new highs, investors must consider how much of this good news the market has priced in to sector favorites.
Global growth trades will prove to be the winners in this last phase of the bull market. But success with them will require accuracy and agility. Outperformance will favor strong stock pickers, as investment correlations that favored passive investment strategies break down while the bull market nears its end. Emerging markets should continue to outperform for the rest of the year.
We continue to see new market leaders emerging to carry stocks higher and expect the upside momentum to carry through the year’s end. Expect value stocks to benefit the most, leading us to add a strong value-oriented auto play to the portfolio.
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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