In 2009 the best-performing stocks were the worst capitalized, the closest to the brink of bankruptcy, the most highly leveraged–in short, the trash. It’s likely that, as the rally progresses–and there are too many skeptics for it to end just yet–the better quality stocks will play catch-up.
Standard & Poor’s maintains a list of what it calls Dividend Aristocrats, those stocks in the S & P 500 that have increased their dividends every year for the last twenty. I’ve expanded that concept a bit by looking at the much broader S & P 1500. (more…)
To ignore emerging markets as an asset class, an area to invest, is to avoid the fastest growing economies in the world. From the much-ballyhooed BRIC nations (Brazil, Russia, India, China) to Thailand and Vietnam, these much younger economies–both in the state of their economies, as well as the equally important demographics of their nations, nothwithstanding China*–should be considered for a part of your portfolio. In our asset-allocation models, the Global Portfolios, we have a 10% allocation to Emerging Markets.
Marc Faber speaks with an accent (always cool), has a ponytail (uh, the ’90s are over, but he’s probably a renaissance man and it’s okay), wears a vest with his suit, and probably wears Prada loafers. He does, however, sport buttondown collars, which strikes me as a little too casual–a spread collar would be a better choice. He also publishes the Gloom Boom & Doom Report, which is the real reason for including the clip, below. In it, Mike Santoli, of Barron’s, interviews him at Barron’s Successful Investing Conference. In it, Marc presents the case for emerging market stocks.
Here’s an example of something that concerns me in light of the current rally. Namely, that price and volume should go together, but now they’re not. That is, in a normal environment–one where things are acting right–rising prices are accompanied by rising volume, and falling prices are accompanied by falling volume. The latter is one reason that folks could say that the market’s bottom testing had been successful in March even though it occurred at lower prices than in November. (more…)
Not a few smart folks have begun to compare the current market with 1938. I was motivated to do the same after reading a Citigroup report this morning, and the particular catalyst was this quote . . . (more…)