Quality is only half of the equation in selecting investments, as a high-quality stock must also offer good value, asserts Kelley Wright, editor of Investment Quality Trends — and a participant in The Interactive MoneyShow Virtual Expo on Sept. 15-16.
Look, I get it. Investors are watching the indexes move higher and are feeling pressure to do something. FOMO (fear of missing out) is a real thing, and boy, does it ever have its hook in investors right now.
Successful investing, in my experience, however, occurs when the intellect is engaged, and investment considerations are based on solid research and thoughtful analysis.
Does this mean to ignore your gut? No! I learned a long time ago that sometimes, you just know something intuitively, which actually is your experience reminding you of something you have seen before. And, when your intuition and analytical tools are working hand in hand, it is a beautiful thing.
Trust me, when it happens you will feel it in your bones. So, here we are, in one of the weirdest environments I can remember. The markets are on steroids, which is not a judgment, just an observation.
I have been hoping for that feeling, searching for it, but for me it just isn’t there right now. Once again, based on my experience, that is my clue to just breathe, relax and let it come to you.
In the interim all the enlightened investor can do is stick to our knitting of limiting investment considerations to only high-quality stocks that offer good value, such as the stock list in our Timely Ten:
Eaton Vance (EV) — yielding 3.66%
Reliance Steel & Aluminum (RS) — yielding 2.38%
State Street (STT)— yielding 3.05%
JPMorgan Chase (JPM)— yielding 3.59%
Philip Morris International (PM)— yielding 5.87%
VSE Corp. (VSEC)— yielding 1.24%
CVS Health Care (CVS)— yielding 3.22%
Eastman Chemical (EMN)— yielding 3.61%
Tyson Foods (TSN)— yielding 2.68%
U.S. Bancorp (USB)— yielding 4.62%
Whether you are looking to build a portfolio from scratch, are partially invested and looking to add new positions, or are fully invested and merely in need of some affirmation and hand holding, The Timely Ten represents our top ten recommendations from the Undervalued category as of each issue.
