The Right Recipe for Stocks

July 8th Weekly Market Update

The summer means cookouts. The recipe for success is usually simple: take a basic ingredient, add some characteristic flavors, and apply some heat. The recipe for stock market investing success may be as simple as taking the S&P 500 and adding the characteristics provided by buybacks as the market heats up in the second half of the year.

Some characteristics to consider for a good core U.S. stock portfolio for the second half include:

-Market-like risk exposure

-Fewer mega-sized companies

-Favor consumer discretionary and health care

-Favor financials

-Avoid materials and energy 

-Avoid utilities and telecommunication services

 

For the full article: The Right Recipe for Stocks