Recent uncertainty over a possible interest rate increase this summer has dampened the Dow Jones Industrial Average, yet economic reports have been a bit better than anticipated.
Job openings—at 5.757 million—were some 300,000 better than expected. Retail sales—despite disappointing results from the major department stores—rose 1.3%, compared to expectations for just a 0.8% increase. (See my Feature in this issue for more details on that sector). And the Michigan Sentiment, that all-important confidence gauge, was also higher than expected.
Housing starts and building permits also rose, but so did unemployment claims. It seems economic progress is continuing, albeit slowly.
As you’ll see from our Advisor Sentiment Barometer, consensus sentiment edged a bit more bullish, but our contributors—as shown in Market Views—remain on the more conservative side for the short-term, but do see interesting possibilities in emerging markets near-term.
But as you know, we keep our subscribers’ long-term financial goals in focus, and with that in mind, we offer an interesting mix of mostly conservative, but also a few more speculative ideas to add to your portfolios this month.
We begin with our Spotlight Stock, a brand name with a story that everyone knows—a stunning IPO, then the ups and downs of actually making the business profitable, and now, a very positive future with the right management team effecting a strategic turnaround. The company’s sector is seeing its own challenges right now, but also amazing opportunities in one particular segment, which I cover in more depth in my Feature.
Our growth ideas include recommendations from the beverage, consumer products, gold, consulting, industrial, apparel, real estate and energy sectors. We offer a couple of low-priced stocks to subscribers seeking a bit of bang for their investment dollars, as well as two emerging markets/international companies to take advantage of the comeback in Asian investments.
Technology was popular with our contributors this month, who found some interesting possibilities with cloud, airline IT, cyber security, networking, tech manufacturing, payment processing and semiconductor stocks.
As more funds began to flow into the healthcare arena, investing interest also has risen, and we offer several biotech recommendations, as well as more traditional ideas. Value stocks continue their upward march, and the two companies included here are both in the transportation arena.
Lastly, our funds section offers two picks that cover both value and growth.
Happy Investing,
Nancy K. Zambell
Editor
Wall Street’s Best Dividend Stocks
cabotwealth.com
