R48 stock/funds recomm for strategic additions to portfolios

[retiredat48]

Here are some recommendations I gave recently to another, on the Fido forum, who asked for same in March. These are based on STRATEGIC FITS in your portfolio, as you see a need:


Asset you most likely can hold forever:

Stock: AMZN Amazon. Been recommending for a decade plus; see no need to change now. CNBC's Cramer states consistent seasonal pattern of recent swoon exists, and consider buying 1st week of April. See multiyear thread on Forum.

Fund/ETF: S&P 500 Index Fund, such as SPY or Vangaurd comparable etf.(Passive)

VPCCX --Vang'd Capital Opportunity Fund (active mgmt)

sleeper: MGK, Vang'd Mega Cap Growth etf

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Retirees seeking dividend yield

Stock: CVX Chevron. Excellent balance sheet; will pick up other bankrupt assets; oil/gas will be strongly with us through your retirement, as a minimum.

Fund/ETF: VIG...Vang'd Dividend Appreciation Fund. Attempts to grow the dividend each year.

XLF SPDR Financials etf ...1.9% yield...(or KRE ...KBE banks). Favorable earnings ahead.

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Investment for next decade

stock: MDT...Medtronics Inc...medical devices. world leader.

fund/ETF: IHI US Medical Devices Fund...was hit by hospital elective surgery limitations with covid---a reopen fav. Also, boomers entering final decade of life need medical devices like replacement knees, heart pacemakers. Generic growth.

Another aggressive Stock: MP...MP Materials Corp: Rare earth metals, needed for future...a USA play.

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Investment for next 1-2 years

MJ, marijuana company etf. Legalization underway; use of foodstuffs and beverages opens up new users; expect strong brand name drinks to evolve. MSOS is an etf of USA only companies.

SPHB Invesco S&P500 Hi Beta etf...1.6% yield; selects top 100 of S&P, momentum based, currently 27% financials; 19% energy; 18% cyclicals; 12% industrials. A return from covid theme Sorry, gone parabolic recently.

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Young investor, max growth

ARKG, ARK family genomic revolution multi sector etf. Top growth prospects; revolutionary field. Sad it is getting so well known...Cathy Woods manager.

VSS, Vang'd All World ex USA Small Cap Fund--small caps are historic good growth; get an almost 2% dividend yield along the way.

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Highly speculative, mad money big winner potential

CCJ Cameco Corp...uranium...if world wants to truly reduce emissions, by going nuclear power.

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International space

ARTYX, Artison Developing World Fund...growth theme

Emerging Market Fund such as EEM--better if weak dollar; covid recovery will happen.

sleeper: ECON, Columbia Emerg Mkt Consumer. Doesn't rely on oil/gas theme. Generic consumer growth.

FSEAX, Fidelity SE Asia Fund. For retirees: MAPIX...Matthews Asia Dividend Fund. Each in large population growth and econ growth areas of the world.

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For retirees, seeking alternatives to poor bond allocation yields available (bond fund)assets

TIBIX...Thornberg Income Builder Fund (mostly stocks). Higher yield (4+%)...attempts to grow dividend annually. Int'l . Somewhat heavy Europe.

PFF and HPS(leveraged--7.6% yield) Preferred Share Funds...high yield; dividends more protected in capital structure.

PCI and PDI...PIMCO leveraged mortgage based funds...9.3% yields. Takes advantage of current zero interest rate environment, expected to now last through 2023. PIMCO top guru in this field.

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Final comments. Too bad many of these investments have had great upward moves recently, some almost parabolic. Investors need to be responsible for their own investing. Do your due diligence, and consider how you invest and your style. I am not an individual stock company investor...have not owned one for 50 years. 

Good luck everybody...

R48

[fishingrod]

R48, Question,

VSS Vanguard All world small cap... still in your playpen from long ago. The lost opportunity with it the last ten+ years has been staggering, yet you continue to push it. Why?

Is it one of those... hold it until it comes around some decades down the road?

Why hold or promote such a losing fund for so long?

[chang]

retiredat48 "VPCCX --Vang'd Capital Opportunity Fund (active mgmt)"

VPCCX is Primecap Core ….. VHCAX is Capital Opp.

Both good funds: VPCCX a little more blendy-valuey. No Adm share available, hence slightly more expensive. VHCO/AX has a purchase limit of $25k/year/acct.

[retiredat48]

Jun 12, 2021 0:29:52 GMT chang said:

retiredat48 "VPCCX --Vang'd Capital Opportunity Fund (active mgmt)"

VPCCX is Primecap Core ….. VHCAX is Capital Opp.

Both good funds: VPCCX a little more blendy-valuey. No Adm share available, hence slightly more expensive. VHCO/AX has a purchase limit of $25k/year/acct.

Yes, I keep getting the titles of these funds mixed up--almost a mental block.

[retiredat48]

Jun 11, 2021 22:37:17 GMT fishingrod said:

R48, Question,

VSS Vanguard All world small cap... still in your playpen from long ago. The lost opportunity with it the last ten+ years has been staggering, yet you continue to push it. Why?

Is it one of those... hold it until it comes around some decades down the road?

Why hold or promote such a losing fund for so long?

Well, hindsight is easy.  VSS had several excellent run-ups in last decade, then faded some.

This was typical of a lot of international stock funds.  But note a good resurgence since year ago sell-off lows.

So yes, lost some opportunity, (it is not a "losing fund"), but one holds some int'l for strategic reasons.

Note that in Feb and March 2020 period, I was suggesting selling some VSS, as I considered EM and especially most small caps would be hardest hit by COVID. 

Since year ago lows, VSS has about doubled in price...a decent performance.  And I consider international still has a long way to go to get out from under COVID.  Few are vaccinated.  Energy company and oil outlook excellent for next couple years, which will help certain country's.

Yes, I consider just like USA market, that small caps may have a huge couple years of higher stock prices.  Just don't know when...but you get an actual yield while waiting.

R48

[fishingrod]

Ok retiredat48,

Sorry to seem to dog on you. It is just that I cut that fund loose many years ago and I got lucky with VWILX Vanguard Int'l Growth Fund.
I understand your reasoning, I would just expect you to re-adjust and not stay with an underperforming fund or asset class for years on end.
But I understand, because if VWILX went down 50% I would probably stand there like a deer in the headlights. Or I might buy more.

Fishingrod

[retiredat48]

Jun 14, 2021 18:41:00 GMT fishingrod said:

Ok retiredat48 ,

Sorry to seem to dog on you. It is just that I cut that fund loose many years ago and I got lucky with VWILX Vanguard Int'l Growth Fund.
I understand your reasoning, I would just expect you to re-adjust and not stay with an underperforming fund or asset class for years on end.
But I understand, because if VWILX went down 50% I would probably stand there like a deer in the headlights. Or I might buy more.

Fishingrod

Fair enough, fishingrod.

But I am somewhat bored with investing and am not spending my later years "searching out the best or top funds."  I'm focusing more on the big picture stuff.

If I improve performance, it simply means my kids or charities will have more monies in the end.  Nothing will be of benefit to my spouse or me.

And BTW that VSS I own is via one of my kids (adults now) IRA started when they were age 12.  I think a small cap international fund, also paying a 2-% dividend, is a good holding space.  There will come a time it doubles or triples, providing the patience gains. I trust you are aware that stock market studies going back to 1920's, shows that small caps beat large caps--until last decade and a half.  Time for small caps to shine?

BTW These kids IRAs I also consider my own money, to be used by spouse or me if needed.  99.9% sure will not be needed, but kids understand this detail.

BTW#3, you're not the only one fishing...I also own VWILX...since fund inception.

R48