Thursday, January 9, 2014

Happy New Year!

Updating the performance numbers...

We are in an economic healing environment.  It is important to make sure we look at how the market is actually trading versus how we think it should trade.  Currently, the market is hitting anything with interest rate sensitivity - dividend payers for example like the telecoms, CLX, LO, GE.  I believe this to be misplaced (at least with LO and VZ and GE) as better economic growth will help these companies as well and I don't see the interest rate sensitivity outweighing the good.  But... it is expensive to "fight the tape".  Better to wait until the market stops the activity and then jump in.  So while I would like to buy more LO for example, I will wait.

I am looking to pitch out ATT.  I am no longer persuaded by it's yield and cheapness relative to VZ.  The growth potential that I see is not really looking too likely and the landline forms too large a part of their business.

I have been buying this emerging market fund.

Developed Europe is looking interesting to me as a cyclical bet.  They have been behind us on the mending front, so it may be interesting to add exposure there.

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