Selected Investments

In this section, I include those investment vehicles that are, in my opinion, worth considering as possible future investments. This includes a series of mutual funds, all of which have given excellent performance with reasonable risk. At certain times, it may include a list of bonds, though in times (like the present) when interest rates are extremely low, fixed income investments may be preferred. This section will include a list of fixed income investments that offer excellent yields and, as a part of a diversified strategy, offer a safe harbor for excess cash. In addition, this section will include a list of stocks that meet my purchase criteria (excellent recent performance, superior earnings, solid fundamentals) and are at or near a technical buy point.

I intend to update the mutual fund list twice yearly. The stock list will be updated at least once per month, though it should be noted that when the overall market is correcting, no stocks at all may be listed. The bonds will also be updated at least monthly, though again, when yields are at extreme lows, no bonds at all may be listed. The list of fixed income investments will be added to periodically.

Fixed Income

Currently, the yield on money market accounts is less than 0.5%, in many cases, considerably less than that. I would not, at this point, invest in money market vehicles unless you have nowhere else to park your money. Five year certificate of deposit (cd) rates are close to 3 per-cent, but this is an historically low yield and I would not invest in them at this time. If you have a large amount of cash, you might consider a strategy whereby you purchase some 3 year cd’s, in addition to some 1 year, 9 month, 6 month and 3 month cd’s. As each cd matures, you can re-invest it as you see fit. Hopefully, you have the option of a higher yielding option, such as a stable value fund. Stable value funds may currently only be offered as part of an approved pension plan. If your plan offers one, you should consider it. Such options include the MetLife Stable Value Fund and the Teacher’s Insurance and Annuity Association (not a stable value fund per se, but offering a similar yield).

Bonds:

Since the yield available from Stable Value Funds and 3 to 5 Year Certificates of Deposit is currently equal to or greater than that of short term corporate bonds, I am not considering the purchase of any bonds at this time.

Stocks

Below is a list of stocks that are, in my opinion, worth considering for purchase. They are up greater than 50% over the past year, have a return on equity greater than 15, a price greater than 15 dollars per share, and significantly increasing earnings. These stocks are, in addition, near a technical buy point. Assuming that the market remains in an uptrend, I will continue to follow these stocks over the next few weeks and further examine for purchase any that hit my technical buy point (0-2% above the 50 day moving average).

 

 Stocks: None at Present

Funds:

These selected funds all have superior performance dating back for 5 years or more and have had the primary fund management in place for a minimum of 3 years. Most do not charge a load for investing. A few do charge a load (such as AEPGX, TPINX and NEFZX) but were previously or currently available for no load in certain qualified pension plans. All are open ended funds except for MDY, SH, SDS and DOG, which are exchange traded funds. Please keep in mind that there are many excellent funds available. Please also keep in mind that you should do your own research prior to investing in any mutual fund, in order to ensure that the fund meets your own criteria and investing goals.

Large Cap Value:

 

  1.  Amana Trust Income AMANX
  2.  American Century Equity Income TWEAX
  3.  Wasatch 1st Source Income Equity FMIEX

Large Cap Growth:

 

  1.  Amana Trust Growth AMAGX
  2.  Fidelity Contrafund FCNTX
  3.  Manning and Napier Tax Managed EXTAX

Mid Cap Value:

 

  1.  Perkins Midcap Value J JMCVX
  2.  Perkins Midcap Value L JMIVX
  3.  Rydex/SGI Midcap Value A SEVAX
  4.  S & P Midcap SPDRs MDY

Mid Cap Growth:

 

  1.  Goldman Sachs Growth Opportunity Svc GGOSX
  2.  Westcore Select WTSLX

Small Cap Value:

 

  1.  Royce Special Equity Invmt RYSEX

Small Cap Growth:

 

  1.  Baron Growth BGRFX
  2.  Buffalo Smallcap BUFSX
  3.  Wasatch Smallcap Growth WAAEX

International:

 

  1.  American Funds Europacific AEPGX
  2.  Artio International Equity BJBIX
  3.  Artisan International Value ARTKX
  4.  Columbia International Value EMIEX
  5.  Delaware Emerging Markets DEMIX
  6.  Evergreen Emerging Markets EMGAX
  7.  Henderson International Opportunities HFOAX
  8.  Matthews China MCHFX
  9.  Mutual European MEURX
  10.  Mutual Global Discovery MDISX
  11.  ING Russia Fund LETRX

Bond:

 

  1.  Templeton Global Bond TPINX
  2.  Buffalo High Yield BUFHX
  3.  Loomis Sayles Strategic Income NEFZX
  4.  American Century Diversifed Bond ACLDX
  5.  Calvert Long Term Income CLDAX
  6.  Calvert Short Duration Income CSDYX
  7.  Calvert Ultra Short Income CULAX

Short Funds – These funds move inversely to the stock market and are most often used as a hedge against the possibility of loss.

 

  1.  Short S & P 500 Proshares SH
  2.  Short Dow30 Proshares DOG
  3.  UltraShort S & P 500 Proshares SDS