From the cheap seats, 2014 looked like another strong year for investors, but when you get up close, the picture that emerges is much less encouraging. Outside of U.S. stocks, markets and economies were weak. This leads some to question the need for global diversification. Why should you stick with a global approach in the face of lagging performance? Markets are cyclical, and with domestic stock valuations in the clouds, global diversification remains the proper approach to portfolio construction, and one we advise for you.
Aside from foreign stocks, energy stocks were out of favor in 2014, and represent great value today, both in the stocks we recommend and in two new fixed income recommendations in the issue. I also have a new short position for you to capitalize on a trend from 2014 that could reverse sharply with any improvement in the global economy. Finally, we are taking profits on a few of our holdings, including a bond fund that outpaced the U.S. market in 2014. More >>
The world’s major economic powers are engaged in an epic currency war that has escalated greatly in recent months. The tactics and strategies being used to wage this war have profound implications for the global investment landscape as well as your portfolio.
In this month’s issue, I walk you through the investment implications of escalating global currency wars, and how can you position your portfolio to profit. First up is a short play that you can make either with a currency account or an ETF. Next, I'll explain how the sharp decline in oil prices at the end of November affects our energy holdings. Finally, I’ll share a nice opportunity for you that we found amidst the rubble, offering a yield to maturity of 5.9% at current prices. More >>
January 28, 2015 "Who are you gonna believe, me or your own lying eyes" Groucho Marx From Bloomberg on October 23, 2014: Caterpillar Climbs After Raising Forecast on Construction "Caterpillar Inc., the largest construction-equipment maker, climbed the most in more than eight months after topping analysts' profit estimates for the third quarter and raising its full-year earnings forecast." […] 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 »