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Let’s just put this right up front: We’re seeing more pressure on American portfolios now than we’ve seen in the last few years.
Instead of rising steadily like it did in 2012 and 2013, the stock market is now struggling.
Instead of keeping pace or beating the major averages, like the Dow Industrials or S&P 500, the average stock is lagging. Heck, the much broader Russell 2000 Index just cracked its 200-day moving average and is trading roughly where it did seven months ago.
The dollar can’t seem to catch a break, precious metals are just treading water, and interest rates have been slumping rather than rising, as I and just about every other analyst and investor were expecting. All in all, that means it’s been much harder to make money as an individual investor.
But not impossible, mind you. No, what you need to do to beat the portfolio heat in this environment is to zero in like a laser on what is working — the stocks rated the highest by an independent rating agency with no axe to grind.
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| Master limited partnerships own storage terminals and pipelines that serve the booming domestic energy industry. |
But even that’s not enough. You have to go a step further and weed out those stuck in loser sectors with no momentum or strong fundamentals, those with excessive interest rate exposure, and those that are just sitting there like a pet rock.
You also want to focus strongly on companies that are paying you — the investor — back! I’m talking about those with proactive managements that are paying out generous dividends, buying back stock aggressively, or otherwise reorganizing their companies to be leaner, meaner, and more focused on building value for you!
That’s what I spent several recent weeks focusing on, and the result is my new special report, “Six Mega Market Winners for 2014 — and Beyond!“
These are companies that fit the general outline I spelled out earlier. One of them is a master limited partnership (MLP) that’s expanding its network of storage terminals and pipelines in order to better serve the booming domestic energy industry. Instead of treading water, this stock is making new record highs every day. But I don’t think this move is over at all, given the growth potential that lies before it.
Another is a packaging company that yields 37 percent more than the average S&P 500 stock. It spent the past year restructuring its business to dump some dead real estate weight. That freed up money for shareholder-friendly actions — including a large special dividend earlier this year.
Its shares flirted with an all-time high in just the past few days. But considering all the things it has going for it, I believe this company has more room to run.
In other words, there ARE stocks that offer consistent, growing profits, and better yields than you can get in either the S&P 500 or the government bond market. I’ve highlighted some favorite sectors, like domestic energy and aerospace before. And in this new report, I give you some of my favorite names within those sectors — and more.
If you’re interested in checking out “Six Mega Market Winners for 2014 — and Beyond!” all you have to do is click here. Or give us a call at: 1-800-291-8545 and we’ll get you taken care of right away! These are some of my best ideas for taking the heat off your portfolio in a year that’s proving a lot tougher than the last few!
Until next time,
Mike
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
