What lessons can long-term investors learn from the results of a four-month stock-picking contest that used imaginary money – and in which two of the best picks were buying stock in an “ugly shoe company” and selling short the stock of a “fake meat producer”? Based on today’s article, quite a few, with the author stating that this contest – carried out by the Wall Street Journal – “has some salient and timeless lessons for investors. Not about stock picking, but rather, how to view your portfolio.” For more, CLICK HERE.
He is worried about the reality of more and more people living longer and longer lives (and how they will afford it). He believes the massive influx into index funds is a “serious error” and that the collapse of index funds is “only a question of when.” He sees stock picking as “a dying art” and stock (or fund) picking as a necessity. And he has some advice for investors right now – hoard cash, buy gold and sterling, and invest in this type of stock. For renowned British investor Jim Mellon’s take on the current investing environment, CLICK HERE.
Today’s article points out that “with Wall Street expecting the S&P 500 to end the year not far from its present level, stock-picking has become attractive for investors seeking anything better than meager returns.” As such, the author highlights Goldman Sachs’ list of 20 stocks – mainly in the consumer discretionary and information technology sectors – “that have the highest potential returns based on their analysts’ price targets for those stocks, as well as better odds of reacting to company-specific news rather than tracking the S&P 500 in general.” To see these 20 stocks, as well as some stocks that Goldman believes may stand out in a not-so-positive way, CLICK HERE.