In 2013, equity markets advanced in most parts of the world to finish with an overall gain of +5% as measured by the Dow Jones Global Index during the first quarter. The equity markets in Europe, Asia, North and South America all finished in the plus column with the United States Dow Jones Industrial Average (DJIA) was up +11% during the period.
In some cases high quality corporate bond yields are less than the equity price equivalents. So we continue to recommend investors that have a long term investment horizon and go overweight stocks versus bonds.
Looking forward we continue to believe the housing market will continue to recover in prices and new growth as inventories are low and household formation continues to build.
You can only live with your parents or in-laws for so long when you are young and wanting to raise your own family.
Our investment approach is to buy companies with consistent earning power, high return-on-equity while employing little or no long-term debt and to purchase at reasonable prices with a high margin of safety.
We have a system that filters thousands of stocks on a weekly basis using the Sparrow 75-point checklist that screens the highest quality companies, which are then reviewed and considered for purchase in your portfolio.
As always, my family and I have almost all of our equity investments in the stocks that are in your portfolios, this does not guarantee a return, but it does focus my attention on things that matter to you as a subscriber. We currently invest for clients that have IRA’s, 401(k)’s, Trusts and taxable accounts in addition to our Covestor models.
