Hello Readers,
In today's edition of intelligent investing I will be sharing a few of my investment strategies. First of all, I always invest based upon a theme. Let's look at our current economic situation; investors are gaining confidence, and they are selling their "stable" stocks in exchange for more cyclical investments. Your theme for this investing period could be "Recovering Economy." At this time, I too would be looking to pick up some high-growth stocks for my portfolio. One such stock would be Boeing (BA). Although I am not telling you to go purchase some shares of Boeing, it is a perfect example of a cyclical grower. In 2008, when the market collapsed, Boeing was one of the hardest hit companies. Since Boeing makes airplanes, when the consumer was not spending very much money on travel, airlines did not need more, or newer, planes. Thus, Boeing did not have orders to fill. However, Boeing has come roaring back (150%) since the crash, because airlines need newer planes, and more of them! Now I encourage you to maybe look elsewhere for growth since Boeing has run up a lot. But stay investing with a theme! One theme that I have personally considered, but am not necessarily recommending, is investing in companies that belong to the "financials" sector. I like this theme for two reasons. 1. Most specifically, banks have refocused on their core business since the market collapse. Many have sold off "less relevant" parts of their businesses. Also, although the S&P500 and the Dow Jones Industrial Average have set all-time highs, these financial companies are not even close to their 2008 highs. That means their is plenty of growth left in the tank. Thanks for reading and continue investing!
Follow me on Twitter @andrewciatto
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