ACTION POINT
THINK LIKE A CONTRARIAN: CONSIDER ADDING ENERGY EXPOSURE TO YOUR PORTFOLIO
THINK LIKE A CONTRARIAN: CONSIDER ADDING ENERGY EXPOSURE TO YOUR PORTFOLIO
PETRIE’S SUGGESTED ENERGY FOCUS: MIDSTREAM COMPANIES
-
- MOVE OIL & GAS FROM WELLS TO END USERS
- PROVIDE INFRASTRUCTURE LIKE PIPELINES, REFINERIES, STORAGE
- GENERATE HIGH LEVELS OF CASH FLOW
- PAY DIVIDENDS ON STOCKS, OR INCOME THROUGH MASTER LIMITED PARTNERSHIPS
- PETRIE’S SUGGESTED ENERGY FOCUS: MEGA OIL AND GAS COMPANIES
- HAVE FINANCIAL HEFT TO GROW THROUGH ACQUISITIONS AND INVESTMENT
BIGGEST COMPANIES INCLUDE:
- – EXXON MOBIL
- – CHEVRON
- – ROYAL DUTCH SHELL
- – CONOCOPHILLIPS
FIGURE OUT HOW YOU WANT TO BE INVESTED IN CHINA AND TO WHAT DEGREE
FIGURE OUT HOW YOU WANT TO BE INVESTED IN CHINA AND TO WHAT DEGREE
CHINA INVESTMENT CHOICES:
- INVEST INDIRECTLY THROUGH COMPANIES DOING BUSINESS THERE
- INVEST IN GLOBAL INDEX FUND (MUTUAL FUND OR ETF) BASED ON AN INDEX THAT INCLUDES CHINA
EXAMPLES OF MAJOR INDICES THAT INCLUDE CHINA:
- MSCI ALL COUNTRY WORLD INDEX = 3.6% CHINA
- MSCI ALL COUNTRY WORLD INDEX EX U.S.= 8.3% CHINA
(Chinese tech companies like Tencent & Alibaba among top 5 holdings) - MSCI EMERGING MARKETS INDEX = 33% CHINA
INVEST IN CHINA SPECIFIC INDEX OR ACTIVELY MANAGED CHINA FUND
- MORNINGSTAR TOP RATED ANALYST MEDALISTS:
- * MATTHEWS CHINA FUNDS
- * COLUMBIA GREATER CHINA FUND
- * INVESCO GREATER CHINA FUND
OWN SOME DIVIDEND GROWTH COMPANIES
OWN SOME DIVIDEND GROWTH COMPANIES
- Financially healthy
- More defensive in nature
- Provide reliable income
- Compounding power if dividends reinvested
MORNINGSTAR ANALYST FAVORITES
- Vanguard Dividend Growth Fund
- Recently reopened to new investors
- Rated 5-star Gold by Morningstar
- Same manager since 2006
- Beaten market with lower volatility
Vanguard Dividend Appreciation ETF
- Gold Medal Analyst rating by Morningstar
- Symbol VIG
REMEMBER TO REBALANCE INTO OUT OF FAVOR SECTORS
REMEMBER TO REBALANCE INTO OUT OF FAVOR SECTORS.
- U.S. growth stocks, mega-caps, in particular, have dominated markets and portfolios for years
- Their powerful performance means they have outsized positions in indexes and portfolios
- Out of favor groups like small caps, cyclical stocks, value, and emerging markets have been beaten down and in many cases are selling at the lowest relative values to large-cap growth since the financial crisis
- Divergence in valuations has created an opportunity not seen in years, to take some profits from overvalued large-cap growth and add to these unpopular and undervalued sectors
OWN SOME GOLD AS A HEDGE AGAINST MARKET, ECONOMIC AND CURRENCY DECLINES
OWN SOME GOLD AS A HEDGE AGAINST MARKET, ECONOMIC AND CURRENCY DECLINES
THE CASE FOR GOLD
- Protected investors during every bear market but one over the last 50 years
- Anytime markets were in a bear market, gold prices were rising
- World economies are slowing
- Central banks are stimulating
- Corporate and government debt at record levels
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