Investing Report For The 4th Quarter


In an investing report from Kiplinger, the company reports, “the rest of the year will favor larger companies over smaller ones; companies that sell at reasonable values over high-growth, high-priced stocks; and companies that are more sensitive to improvement in the economy than those considered more defensive.”

It predicts the Fed will start “unwinding its bond-buying program aimed at keeping long-term rates low and will eventually look toward raising short-term rates, most likely next year.” While this could cause the market to suffer, other might view this “as a vote of confidence in the economy.”

Kiplinger expects the GDP to continue grow. They believe “corporate spending on physical assets, such as factories, equipment and office space, has been the missing link to more robust economic growth.”

The trend of share buybacks, or companies buying back their own shares on the marketplace, “is now penalizing companies and investors as rising stock prices make such programs expensive.”

With this growth in economy, Kiplinger recommends, “[t]ilting your portfolio toward economy-sensitive stocks.” Also, “it makes sense to gravitate toward stocks selling at bargain levels relative to earnings and other traditional gauges of value.”

Investors may also want to consider holding off on investing and putting their money into reserves “to be able to pounce on new opportunities or if changes in your circumstances so dictate.”

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