Important Disclaimer: Ken Kam, Marketocracy Data Research's Editor in Chief, also is portfolio manager for mutual and hedge funds advised by a Marketocracy affiliate. Before relying on his opinions, always assume that he, Marketocracy, its affiliates and clients have material financial interests in these stocks and hold or trade them contrary to those opinions. Continue reading for more detailed and important disclosures, disclaimers, limitations and material conflicts of interest.

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August 31, 2009

Going where the dividends will be

graph of fund vs. market indexes
BIPm100 S&P 500 DJIA Nasdaq

Today, investors looking for dividends are finding slim pickings. Many stocks that investors used to count on for income have either slashed their dividends or eliminated them completely.

Wayne Gretzky once said that, "a good hockey player plays where the puck is, and a great hockey player plays where the puck is going to be." I think this applies equally well to great investors like Eugene Groysman , one of Marketocracy's mFOLIO Masters. Instead of buying stocks that are paying meager dividends, Groysman is buying stocks that he thinks could be increasing dividends in the future.

Which stocks might those be?

Groysman thinks the banking sector is a good place to look. After taking tremendous losses last year, many banks cut their dividends to rebuild their capital and repay the money they took from the government through TARP. However, now that banks are paying close to zero interest for short-term deposits their profit margins on their loan portfolios have increased to the point where the strongest banks have been able to repay their TARP funds in less than 1 year!

The question is, what are they going to do with these profits next year? Since many banks paid dividends consistently for a very long time (until last year), Groysman anticipates that healthy banks will start to restore their dividends.

In a previous article, Groysman told us why he likes US Bancorp (USB). Today, I'm going to let him explain his thinking about Barclay's PLC ADR (BCS).

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August 18, 2009

Investing so you can sleep at night

When I was in Hawaii recently to celebrate my parents 50th wedding anniversary, I learned that a lot of my relatives are not sleeping well at night because their portfolios suffered a big setback last year and their advisors are telling them to "stay the course." They are afraid to stay in stocks because they can't afford to have another year like last year. On the other hand, they cannot stay in cash because money market rates are so low that they can't live off the interest.

They wanted to know what I thought they should do now. Here's what I told them.

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August 3, 2009

The Top Healthcare Investor's Top Pick

The President’s plan to reshape healthcare creates both risks and opportunities for investors. This is not a time to have newly minted MBAs managing your healthcare investments. If you own funds that invest in healthcare stocks, it is especially important to look at the track records of the people who will be making investment decisions with your money.

I have been tracking Jack Weyland, an exceptional healthcare investor, since July 25, 2002. Over the 5 years ending June 30, 2009, Weyland has averaged 26.51% a year, while the top performing healthcare mutual fund, BlackRock Health Sciences (SHSAX), averaged just 6.93% according to Morningstar.

So far this year Weyland is up 74.89%. How does he do it, can he keep doing it, and what does he like now?

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