Technology and Internet retail companies have largely driven the S&P 500’s run. These stocks, while not yet at the sky-high valuations that prevailed in 1999-2000, are now far from cheap. To protect against the pullbacks history tells us is common, we're adding a hedge to the Portfolio.
Passive management works for some people some of the time. Recognizing how and when it doesn’t work is key for downside protection and proper investment allocation. Plus, we end with an update on two of our portfolio holdings.
With little sign the US is headed for recession by the middle of next year, there’s more upside for stocks this cycle. It’s dangerous to sell out too soon and miss out on the final months of the bull market.
Investor talk has turned against the Trump Trade, and for all the wrong reasons. While a market correction is due, look to the sectors that did well during the post-election period to perform well–making pullbacks an opportunity to buy.
Now more than ever, many of the biggest, safest and fastest growing yields come in small packages. We hold four relatively small capitalization, high dividend companies in the Lifelong Income Portfolio and review the power of small strength.
Last week, the S&P 500 endured its worst one-day selloff since the immediate aftermath of Britain's surprise vote to exit the EU last summer. Although the S&P 500 gave up only 1.25 percent of its value yesterday, the decline felt more serious because the market has exhibited low volatility and traded within a tight range over the past 12 months.
The Dow Jones Utility Average has returned more than 10 percent since early December 2016, outperforming the S&P 500 by a few percentage points. It’s now reached valuations where the risk-reward balance skews to the downside. In this environment, investors should evaluate the macro forces that could bat these stocks about in coming months.
The final five Lifelong Income Portfolio members released their numbers, allowing us to gauge their health and dividend stability. Given the difficulty of revenue growth for many companies, it’s more important than ever to examine how costs and operations are being managed.
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.