The Ticker
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The Case Against Financial Stocks
Continue reading… 0 CommentsFund manager Jerry Jordan doesn't stick to any one strategy. Instead, he invests thematically. From the helm of the Jordan Opportunity Fund (symbol JORDX), Jordan plays three to five different themes—typically industries—at one time. For the most part, Jordan looks for fast-growing companies across all sectors and company sizes, and he's not afraid to invest a large percentage of his fund in one sector while owning nothing in another.
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Jordan says some themes run longer than others. He's been bullish on energy for "a very long time," and he's currently devoting a fair chunk of his portfolio to certain areas of healthcare. In February and March, he was into bank companies, but Jordan got out by the end of August because he believed the tremendous rally in the sector wasn't supported by significant structural changes.
The fund, which started in January 2005, lost 37 percent in 2008 but is gaining ground, with an impressive 42 percent return so far this year. The fund's 5 percent annualized return over the past three years places it in the top 1 percent of all large growth funds, according to Morningstar. U.S. News recently spoke with Jordan about the state of financials and the beat of the market. Excerpts:
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Corporate Earnings Drive Dow to 10K
Continue reading… 0 CommentsWith the Dow reaching the 10K plateau yesterday, where do the experts stand? Most will tell you 10,000 is just a round number that's easy to single out. U.S. News caught up with two economists, both just as optimistic about the Dow's potential as they were almost a month ago.
Jeffrey Saut of Raymond James & Associates points to recent earnings announcements and says they came as no surprise to him. JPMorgan Chase was the first banking giant to release its monster earnings yesterday, and today Goldman Sachs has followed suit with earnings tripling since the days of the financial panic, according to the AP.
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A Refresher Course in Active Trading
Continue reading… 1 CommentThe third quarter featured the best gains in the Dow Jones industrial average since 1998, but the first few days of October haven't been as promising. U.S. News spoke with Randy Frederick of Charles Schwab, who offers a quick refresher course for investors on how to navigate this uncertain market. Is it time for a pullback, or does the market still present attractive opportunities? Frederick says it's too soon to tell but that there are certain investing basics that every active investor should keep in mind. Excerpts:
Don't try to time the market. "Scale in and out of positions slowly," he says. Too many investors try to time the market—either selling off everything before the market peaks or jumping back all-in before it bottoms out. Both result in missed opportunities to make money. If last week's returns are any indicator, the market may be heading toward a sell-off. For the time being, what should investors do?
