ACTION POINT
MAKE SOME INVESTMENTS OUTSIDE OF THE COUNTRY
MAKE SOME INVESTMENTS OUTSIDE OF THE COUNTRY
All Investors Tend to Have a Home Country Bias
U.S. Has Been the Place to Invest for the Last Decade
Its Late in the Economic and Market Cycle for U.S.
Early in Cycle for Some Countries, Particularly in the Emerging Markets
Some Countries Experiencing Economic Turnarounds and Political Reform
A MORNINGSTAR FAVORITE:
- ARTISAN DEVELOPING WORLD FUND (ARTYX)
- Morningstar 5-Star & Bronze Medalist ratings
- Run by Lewis Kaufman
- Experienced emerging markets manager
- Launched it in 2015
- Focuses on 40-50 high-quality companies
- Based in emerging markets themselves, including frontier markets or developed market companies
- Large exposure to emerging markets
TAKE ADVANTAGE OF THE INCOME, AND DEFENSIVE QUALITIES OF DIVIDEND PAYING STOCKS
TAKE ADVANTAGE OF THE INCOME, AND DEFENSIVE QUALITIES OF DIVIDEND PAYING STOCKS
Morningstar’s CHRISTINE BENZ’ “TANTALIZING DIVIDEND YIELDS” FUNDS:
SCHWAB U.S. DIVIDEND EQUITY ETF (SCHD)
- – Morningstar Silver Analyst Rating
- – Higher-yielding half of the 2500 largest U.S. stocks (excluding REITs)
- – Consistent dividend payers
- – Companies that score well on various profitability measures
VANGUARD EQUITY-INCOME FUND (VEIPX)
- – Morningstar Silver Analyst Rating
“…run by two separate management teams plying complementary strategies.”
– Christine Benz, Morningstar.com - Vanguard Equity-Income Fund management teams:
— Wellington – finds dividend paying companies inexpensive relative to their growth prospects - – Vanguard – uses a quantitative approach
VANGUARD HIGH DIVIDEND YIELD ETF (VYM)
- – Morningstar Silver Analyst Rating
- – Avoids big bets in traditional high-yield sectors like financials, utilities and energy stocks by the way it weights the portfolio
LATIN AMERICA ECONOMIC EXTREMES
CONSIDER PUTTING A SMALL AMOUNT OF YOUR EMERGING MARKETS ALLOCATION INTO AN ESTABLISHED LATIN AMERICAN FUND.
LATIN AMERICA ECONOMIC EXTREMES
-
FAILURES:
- Open market economies:
- – Chile
- – Colombia
- – Peru
- – Bronze Medalist
- – 4-Star Rating
- – Experienced team
- -“Sound and distinctive growth discipline”
Venezuela’s economic collapse
SUCCESSES:
POTENTIAL TURNAROUND
-
Brazil- attempting serious pension reform
ESTABLISHED LATIN AMERICAN STOCK FUND
-
T. Rowe Price Latin American fund (PRLAX)
MAKE SURE YOU HAVE SOME DEFENSIVE HOLDINGS IN YOUR PORTFOLIO
MAKE SURE YOU HAVE SOME DEFENSIVE HOLDINGS IN YOUR PORTFOLIO
- Ward’s Choices: Counter-cyclical stocks like utilities and cell tower companies
- Individual Investors’ Choices: Defensive non-stock assets like cash, Treasury bonds, gold …
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