Resetting the Portfolio.
The US is now the sole go to market for investors – it is awash with funds and we are at an all time market high. Trump will now bend every sinew to ensure it stays that way …. and you can expect me to use the word “soften” a lot.
So the FED wil go soft on interest rates – there could even be a further tax cut in the next 18 months. The president will soften his foreign policy especially over tariff and trade flirtatiions with China – expect a softening vocabulary.
How has this impacted my portfolio. Here is a summary for you to check out.
It had been entirely US centric, favouring high dividend payers and always looking for solid growth. It has not changed a great deal. ABR (yield 9%) CTRE (3.7%), CCI (3.4%), DRI (3%), EPD (6%), GLP (10%), NLY (11%) and NRZ (13%) remain the spine of my holdings. CQP (5.6%) hs been there throughout.
I have added further US centric stocks over tha last few weeks – IDXX (pets), CPRT (auto disposals), RCII (unique rental co) and NXST (press and TV).
But I have also added starter holdings in some great US companies who are also global players in software and cash management – CDNS, CDW, CSCO, MA, PYPL and one brilliant Latin American cash management company PAGS. CQP the LNG export leader has been building throughout.
I wanted you to see how there is a slow and steady move to very strong but more global operations. So far the portfolio is holding a return this year of 50%. Expect the US market to remain strong and, absent black swans to contine to rise. For more on black swans read my Thoughts for Monday in the archive.
Have a great day, James.
James is an international speaker and advisor to the King Group of Wealth Management at Merrill Lynch.