Please ensure Javascript is enabled for purposes of website accessibility

Cabot Editor Goodwin Gives MSN his Top 5-Year Stock Picks

Paul Goodwin tells MSN columnist Michael Brush his favorite investment picks for the next five years.

Top 5-year investment picks for 2009

Excerpt from MSN Money
By columnist Michael Brush

December 22, 2008

In a recent column, I rounded up a 2009 outlook from market experts at the top investment newsletters ranked by their 10-20 year records—enough time to have been through more than one bear market.

But top-ranked investment writers in the next Hulbert Financial Digest category—five-year returns—are worth checking in with, too. After all, these investment letters earned their strips for excellent stock picking coming out of the last recession. Since we may be coming out of this one soon, their strategies are worth considering now, for advice on how to play a rebound.

Here’s a look at what analysts at the top newsletters for five-year returns are saying about what’s in store for 2009 and how best to play the trends:

Cabot China & Emerging Markets Report

Rank: #2 for five-year performance

Annualized returns: 11.6%

Big picture call: Cabot China & Emerging Markets Report editor Paul Goodwin typically invests in momentum stocks. So it’s no surprise to find him 100% in cash in this lousy market. However, he’s close to getting back into Chinese stocks. All it would take will be some continued positive momentum in the group -- or another several days of gains in the Halter USX China Index.

Favorite picks: If he gets the momentum green light, he’d be buying the iShares FTSE/Xinhua China 25 Index (FXI) exchange traded fund, which is made up of larger, less risky Chinese companies. He also likes China Sky One Medical (CSKI) which sells traditional Chinese herbs, supplements and medicines, and has solid revenue and earnings momentum.

More News about Cabot

More information on Cabot China & Emerging Markets Report

Cabot Home

Sign up for free Cabot Wealth Advisory e-newsletter