Author: Capital Ideas
Model: Macro and Macro Plus Income
The month of April brought a few changes to our portfolios.
The Macro ETF fund remained focused on the three major trends we believe will continue. To invest in those trends we own the following securities. They are:
Trend 1: The expanding need for energy
United States 12 Month Oil Fund (NYSE: USL)
We believe as the dollar weakness continues, oil prices will remain firm and rise as demand expands. This fund allows us to own oil and minimize the negative effects of the futures contract roll.
SPDR Oil Service Trust (NYSE: XES) We think the worldwide trend of growing energy exploration will continue and these companies will benefit from that expansion.
Trend 2: The growing world hunger for better nutrition
Market Vectors Agribusiness (NYSE: MOO) We expect this mix of companies will continue to prosper as food demand grows.
Trend 3: Continuing rise in markets as excess liquidity seeks return
iShares MSCI EAFE Index (NYSE: EFA) This ETF provides exposure to major developed foreign markets.
SPDR Mid Cap 400 ETF Trust (NYSE: MDY) We believe this will continue to be the fastest growing segment of the domestic markets.
The Macro Plus Income Portfolio added two new positions which we hope will add both income and growth of principle. They are:
CVR Partners LP (NYSE: UAN)
This relatively new issue follows our growing world hunger investment theme. It is a producer of liquid ammonia fertilizer with two unique cost advantages: the location of the plant in Kansas and the use of pet coke as a feed stock. These factors combined with the prospect of a cash distribution to unit holders will hopefully provide us with significant return on investment over the next 12 months.
Wisdom Tree Emerging market Small Cap Dividend (NYSE: DGS)
We believe exposure to the smaller companies in emerging economies will be the best risk/reward approach to investing in those markets. The prospect of being paid with dividends to wait for results is enticing.
