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 information on Cabot China & Emerging Markets Report
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