Global equity markets have started the year on a sour note. The liquidity-fueled rally that pushed stocks to the verge of bubble territory in 2013 has abruptly come to a halt. The blue-chip Dow cratered 7% from the end of 2013 to the low at the beginning of February, erasing every bit of price appreciation since May of last year—that's right, in the matter of a few trading days, the Dow erased more than 8 months of gains. What is driving the correction in global equity markets, and how far could stocks drop?
At Young Research, we can’t tell you with any degree of confidence whether the sell-off is the beginning of a deeper downturn or just a run-of-the mill correction. Our advised strategy for playing the dismal hand the market has dealt you is to swap your cards. Shy away from the speculative stocks that have become a dominant force in the U.S. stock market. Instead, craft a portfolio of high-dividend paying companies and focus on those dividend payers that are out of favor. What securities are out of favor today? Anything related to precious metals. This month, I'm letting four of the stocks in our Equities Master List go to free up money for a new precious metals double play including two long bonds from one of the world’s largest gold producers and the common stock of a mid-size gold and silver producer. The bonds offer a more than three-percentage-point yield advantage over Treasuries, and the stock has a long history of returning capital to shareholders, with the potential for an upside breakout. More >>
For traders and speculators, 2013 was a banner year. For discerning, conservative investors, 2013 was a year when you sat patiently and uncomfortably as the same people who regularly pile in at the top and bail out at the bottom made easy money. The U.S. market was led by the most speculative sectors and shares. Investors who earned as much as the U.S. stock market did in 2013 could have achieved those results only by taking imprudent risk. Warren Buffet’s adage that investing is simple but not easy applies here. If you resisted the temptation to chase performance in speculative shares, you made the appropriate, if unpleasant, decision.
To keep you on the right course in 2014, we are dedicating this month’s issue exclusively to stocks. We call it the Big Stock Issue. Buying stocks is the easy part of investing. But once you’ve purchased a stock, how do you know when to sell, when to buy more, or when to hold? To position your portfolio for investment success in the ever-shifting global investment landscape, it is vital to regularly evaluate your holdings. You want to ask yourself if the investment merits of the companies you own are still valid, whether the valuation of each of your positions is still reasonable, and whether there are any new risks or threats to the company’s business prospects. We will cover this and more for each and every stock on the Equities Master List in this month’s issue, giving you everything you need to craft a battle-tested global portfolio to withstand the most ruthless of investment climates. More >>
March 07, 2014
Some of the big dogs in private equity are selling. Good luck to those who stick around. The WSJ reports: Shares of private-equity firms are soaring, and buyout barons are selling. Top executives at three publicly traded private-equity firms have sold more than $500 million of their firms’ stock over the past year, according to […]More »
The Young Research Commodities chart book includes price, both real and nominal, for different time periods and annual rates of change for the commodities covered on the Global Investment Scorecard.
The Young Research Equities chart book includes a range of charts featuring indicators on stock market valuation, sentiment, relative strength, etc. for U.S. stocks over a variety of timescales.
The Young Research U.S. Economy chart book includes short and long-term charts on output and activity, the labor market, inflation, and consumer and business sentiment.
Since 1896, the average bull market has lasted 835 days and resulted in a doubling of stock prices. For more historical perspective on the duration and magnitude of bull and bear markets, check out our new Dow Bull and Bear Markets table.
Our Credit Markets chart book includes many of the charts we monitor and use regularly to formulate fixed-income investment strategy. The chart book includes long-term charts on nominal and inflation-adjusted treasury rates, policy rates, interest rate valuation indicators, and credit spreads.
Jeremy Jones, CFA, is the director of research for Young Research & Publishing and editor of the Global Investment Strategy newsletter. Jeremy is also the Chief Investment Officer at Richard C. Young & Co., Ltd., an investment advisor to high net-worth families and businesses. More »