In the last month, we again added to our position in Aberdeen Chile Fund (CH). We closed our positions in American Capital Agency (AGNC) and Invesco Mortgage Capital (IVR) to avoid their volatile movements. We want prices to be stabilized before re-opening a position. I don’t know how the fiscal cliff will be resolved or how it will affect the markets. So with that in mind we will be conservative and for the rest of the year we will not make any changes and will not open any other positions.
For the upcoming year, I’m looking back at two stocks we owned before: Microsoft (MSFT) and Netflix (NFLX). Questions I’ll be asking: Is Windows 8 and the Surface tablet selling well? Is Microsoft undervalued? Is Netflix still growing? At what price should we open a position, if at all?
Another sector I will be looking at is energy – specifically, oil companies and US Oil Sands (USO). I think this sector may surprise inventors this coming year. It’s altogether possible for oil prices to go down next year, with American and Canadian oil production increasing and Iraq’s oil fields developing. Does this mean oil companies will make more money because more oil is being pumped? Or will oil prices and profits drop due to increasing production?
As we head into the new year, we will have to answer these questions and position our portfolio to take advantage of these opportunities.
Disclosures: The investments discussed are held in client accounts as of December 6. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.
Certain information contained in this presentation is based upon forward-looking statements, information and opinions, including descriptions of anticipated market changes and expectations of future activity. The manager believes that such statements, information and opinions are based upon reasonable estimates and assumptions. However, forward-looking statements, information and opinions are inherently uncertain and actual events or results may differ materially from those reflected in the forward-looking statements. Therefore, undue reliance should not be placed on such forward-looking statements, information and opinions.
