The S&P 500 is up an amazing 22% year-to-date, with no signs of slowing down.
However, for cautious investors that doesn�� mean it�� time to just throw money around the stock market willy-nilly. You can be in the wrong stocks right now even though you��e made some money in 2013 — and it�� important to keep relative performance in mind.
For instance, if you have big-name blue-chips in your portfolio that have delivered a small gain so far this year, you may be inclined to consider them ��ood buys.��However, a stock that is up 10% has performed less than half as well as the average stock on Wall Street.
And remember, that�� just the average, with others significantly outperforming even the 22% gains by the S&P.
It�� true that being greedy can do a lot of damage to your portfolio as you chase risky investments. But sitting on your hands and accepting a fraction of the gains that the broader market is racking up is not a good way to plan for retirement — because not only are you missing out on profits, but you risk seeing your stocks tumble even faster than the better investments that are out there when the market hits a rough patch.
Top Construction Stocks To Invest In 2015: Westport Innovations Inc(WPRT)
Westport Innovations Inc., together with its subsidiaries, engages in the provision of low-emission engine and fuel system technologies that enable light, medium, heavy-duty, and high-horsepower petroleum-based fuel engines to use natural gas and alternative fuels. The company designs, produces, and sells alternative fuel engines, systems, and components for automotive and industrial markets. It also designs, engineers, and produces natural gas engines for the urban buses, refuse collection trucks, and conventional trucks and tractors, as well as for specialty vehicles. In addition, the company offers 15 litre natural gas engines for the heavy-duty trucking market, as well as is involved in the engineering, design, and marketing of natural gas-enabling technology for the heavy-duty diesel engine and truck market. Westport Innovations Inc. was founded in 1995 and is headquartered in Vancouver, Canada.
Advisors' Opinion:- [By Arjun Sreekumar]
Natural gas making inroads in trucking
For instance, UPS (NYSE: UPS ) recently announced that it will buy about 700 natural gas vehicles by the end of 2014, adding to its current fleet of 112 18-wheelers than run on LNG.�The package delivery company said its trucks will use engines manufactured by Cummins (NYSE: CMI ) , under a joint venture with another engine manufacturer, Westport Innovations (NASDAQ: WPRT ) . � - [By Jon C. Ogg]
Our take is that for�$75 oil as a benchmark�to happen, the global economy has to tip backward into even slower growth (or worse) AND that a change to natural gas engines for the US truck fleet has to occur. T. Boone Pickens has been a huge proponent for this effort, and it is one reason we pointed out earlier in the year that Westport Innovations Inc. (NASDAQ: WPRT) could actually double again. Until better hope of a natural gas trucking fleet is possible, this remains a long shot. Barron’s contends that internal combustion engines can now be run efficiently on alternative fuels (including gas).
- [By Matt DiLallo]
Increased demand for natural gas from the transportation sector will be a key driver for companies like Westport Innovations (NASDAQ: WPRT ) . With the low price of natural gas the payback period is easy to justify as the incremental cost of a Westport designed engine is paid back within one year. It's very possible that Enterprise's demand forecast might be a bit conservative when it comes to natural gas vehicles, but the industry still has a long way to go.
- [By Joel South]
In the following video, Motley Fool energy analyst Joel South takes a question from a Fool reader, who writes: "What are your thoughts on natural gas as a transportation fuel? Can Westport Innovations (NASDAQ: WPRT ) and Clean Energy Fuels (NASDAQ: CLNE ) fill this niche?"
Top 10 Performing Companies To Own For 2014: Westpac Banking Corp (WEBNF)
Westpac Banking Corporation is a banking company. It operates through three divisions: Australian Financial Services (AFS), Westpac Institutional Bank (WIB) and Westpac New Zealand. AFS consists of Westpac�� retail and business banking operations in Australia, and includes Westpac Retail & Business Banking (Westpac RBB), St.George Banking Group and BT Financial Group Australia (BFTG). Westpac RBB is responsible for sales and service for consumer, small-to-medium enterprise customers and commercial customers under the Westpac brands. St.George is responsible for sales, and service for its consumer, business and corporate customers in Australia under brands, such as St.George and BankSA. BTFG is Westpac�� Australian wealth management division. In January 2014, the Company completed the acquisition of Lloyds Banking Group Plc�� Australian asset finance business, Capital Finance Australia Limited, and its Australian corporate loan portfolio, BOS International (Australia) Ltd. Advisors' Opinion:- [By MARKETWATCH]
LOS ANGELES (MarketWatch) -- Stocks in Australia fell early Thursday, pressured by a drop in the country's currency to a three-month low below 90 U.S. cents, and by losses on Wall Street overnight on concerns about tapering of monetary stimulus. The S&P/ASX 200 (AU:XJO) fell 28 points, or 0.5%, to 5,246, led by losses in the heavily weighted financial sector. There, shares of Westpac Banking Corp. (AU:WBC) (WEBNF) lost 1.2%, National Australia Bank Ltd. (AU:NAB) (NAUBF) declined 1%, and Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) shed 0.7%. Shares of Qantas Airways Ltd. (AU:QAN) (QUBSF) sank 14% after the company warned it expects to post an underlying loss before tax of $250 million to $300 million for the six months ending Dec. 31. The carrier said trading conditions saw a marked deterioration, particularly in November with both passenger loads and yields "below the already negative trends for the year to date."
- [By MARKETWATCH]
LOS ANGELES (MarketWatch) -- Australian stocks started Monday trade higher, with the S&P/ASX 200 (AU:XJO) up 0.8% at 5,206.40 after a strong finish for Wall Street at the end of last week. Resource shares got a lift from gains for commodities prices since the previous trading session, with strong advances for gold and copper and a more than 2% rise for New York-traded crude-oil futures. Among the leading gainers, Rio Tinto Ltd. (AU:RIO) (RIO) added 1.2%, Oil Search Ltd. (AU:OSH) (OISHF) climbed 1.3%, and gold miners Newcrest Mining Ltd. (AU:NCM) (NCMGF) and Evolution Mining Ltd. (AU:EVN) (CAHPF) improved by 3.9% and 6.4%, respectively. The heavily weighted banking sector also enjoyed solid gains, with Commonwealth Bank of Australia (AU:CBA) (CBAUF) up 1%, Westpac Banking Corp. (AU:WBC) (WEBNF) trading 1.3% higher, and National Australia Bank Ltd. (AU:NAB) (NAUBF) rising 1.1% as the U.K.'s Sunday Times reported the lender is considering a 拢2 billion ($3.3 billion) float of its British operations, which the report said had dragged on NAB's results in recent years.
- [By MARKETWATCH]
LOS ANGELES (MarketWatch) -- Australian stocks advanced Tuesday, as gains in market heavyweight BHP Billiton Ltd. helped push the equity benchmark toward its sixth consecutive win. The S&P/ASX 200 index (AU:XJO) rose 0.2% to 5,364.90 on strength in the mining group after BHP Billiton (AU:BHP) (BHP) raised its fiscal-year forecast for iron-ore production to 212 million metric tons following record output from its mining site in Australia's Pilbara region. BHP shares climbed 1.7%, iron-ore producer Fortescue Metals Group Ltd. (AU:FMG) (FSUMF) rose 0.9% and Rio Tinto Ltd. (AU:RIO) (RIO) picked up 0.4%. Finance issues mostly higher as well, with Westpac Banking Corp. (AU:WBC) (WEBNF) up 0.6%. But underperforming the benchmark were shares of David Jones Ltd. (AU:DJS) (DVDJF) , down 2.8% after the upscale retailer unexpectedly said late Monday its Chief Executive Paul Zahra plans to step down after three years in the position.
- [By MARKETWATCH]
LOS ANGELES (MarketWatch) -- Stocks in Australia gave up ground early Tuesday before the country's central bank issued its final interest-rate decision of the year. The S&P/ASX 200 (AU:XJO) shed 0.2% to 5,271.10, with financial stocks mixed ahead a widely expected decision by the Reserve Bank of Australia to leave its benchmark rate at 2.5%. Westpac Banking Corp. shares (AU:WBC) (WEBNF) gave up 0.3% and Commonwealth Bank of Australia (AU:CBA) (CBAUF) shed 0.1%, but National Australia Bank Ltd. (AU:NAB) (NAUBF) tacked on 0.3%. Gold stocks were hit, dropping after gold futures fell by more than 2% overnight on concerns about a pullback in monetary stimulus by the U.S. Federal Reserve. Shares of gold miner Newcrest Mining Ltd. (AU:NCM) (NCMGF) lost 6.4%, Evolution Mining Ltd. (AU:EVN) (CAHPF) fell 6.7%, and Kingsgate Consolidated Ltd. (AU:KCN) (KSKGF) slid 9.7%.
Top 10 Performing Companies To Own For 2014: Provident New York Bancorp(PBNY)
Provident New York Bancorp operates as the bank holding company for Provident Bank that provides commercial, community business, and retail banking products and services to businesses, individuals, and municipalities in New York and New Jersey. It offers various deposit products, such as savings accounts, NOW accounts, checking accounts, money market accounts, club accounts, certificates of deposit, commercial checking accounts, IRAs, and other qualified plan accounts. The company?s loan portfolio includes commercial real estate, commercial business, and one-to four-family real estate loans; acquisition, development, and construction loans; and consumer loans, including homeowner, home equity lines of credit, new and used automobile loans, and personal unsecured loans, such as fixed-rate installment loans and variable lines of credit. In addition, it provides services, including cash management, sweep accounts, insurance agency, investment advisory, asset and investment m anagement, and Internet banking services. As of September 30, 2011, Provident New York Bancorp operated 30 retail branches and 7 commercial banking centers in the Hudson Valley region. The company was formerly known as Provident Bancorp, Inc. and changed its name to Provident New York Bancorp in June 2005. Provident New York Bancorp was founded in 1888 and is headquartered in Montebello, New York.
Advisors' Opinion:- [By Jon C. Ogg]
The M&T Bank Corp. (NYSE: MTB) and Hudson City Bancorp Inc. (NASDAQ: HCBK) transaction is the only pending deal of 2012 vintage due to various regulatory concerns. MTB currently has 9% short interest outstanding and PACW 15%. Another merger covered is the deal between Provident New York Bancorp (NASDAQ: PBNY) and Sterling Bancorp (NYSE: STL), and the balance are simply too small for us to warrant effort.
Top 10 Performing Companies To Own For 2014: iShares MSCI EAFE Index Fund (EFA)
iShares MSCI EAFE Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the MSCI EAFE Index (the Index). The Index has been developed by Morgan Stanley Capital International, Inc. as an equity benchmark for international stock performance. The Index includes stocks from Europe, Australasia and the Far East. The Index is a capitalization-weighted index that aims to capture 85% of the (publicly available) total market capitalization.
The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Fund�� investment advisor is Barclays Global Fund Advisors.
Advisors' Opinion:- [By Dan Caplinger]
Similarly, diversification within stocks didn't work well. The performance of iShares Russell 2000 (NYSEMKT: IWM ) and SPDR S&P MidCap 400 (NYSEMKT: MDY ) showed that there wasn't shelter available in small- and mid-cap stocks. International stocks often help protect against losses, but massive capital flight from emerging markets socked popular ETFs Vanguard Emerging Market (NYSEMKT: VWO ) and iShares MSCI Emerging Markets (NYSEMKT: EEM ) for single-day percentage losses that were nearly double the Dow's decline. Even developed markets suffered more than the U.S., as iShares MSCI EAFE (NYSEMKT: EFA ) posted losses 50% greater than the U.S. market's.
- [By Chris Ciovacco]
The damage from Wednesday's session did little to disturb the market's longer-term risk tolerance profile, which is easy to understand when you consider the S&P 500 is still up 3 points for the week. However, we have seen some emerging cracks over the past two weeks. Demand for bonds has not surpassed stocks, but there is evidence of an attempt to mount a more formidable charge relative to stocks. Recent interest in defensive consumer staples (XLP) also tells us to keep an open mind about a "give back" after the S&P 500 gained 129 points from the October 9 low to the recent high. The observable evidence in the table above aligns with a growth-oriented allocation, including exposure to broad U.S. stock market (VTI), emerging markets (EEM), foreign stocks (EFA), and technology (QQQ).
- [By Dan Caplinger]
How to invest in stocks without risking everything
Use index funds or exchange-traded funds to get easy diversification with modest investments. Broad-market ETF Vanguard Total Stock Market� (NYSEMKT: VTI ) makes a good starting point for many investors because it provides a mix of U.S. companies of all sizes, avoiding the need to have separate funds to add stocks of small and mid-size companies. Adding other ETFs can further diversify into stocks outside the U.S., with iShares MSCI EAFE (NYSEMKT: EFA ) providing broad-based exposure to stocks in some of the largest economies in the world. Look for short-term crisis situations with likely positive outcomes. For instance, Boeing (NYSE: BA ) took a big hit after its Dreamliner aircraft's battery safety was compromised. For a few months, the aircraft was grounded, leading to intense investor fear. Yet the company rapidly resolved the problem, and investors have once again focused on the multitrillion-dollar potential for future orders over the next 20 years, rewarding value investors. Be careful with high-priced, high-growth stocks. They can be the best performers in your portfolio, but you'll suffer gut-wrenching moves along the way. Netflix (NASDAQ: NFLX ) , for instance, soared to nearly $300 per share in 2011 before plunging 75% in the face of its ill-advised attempt to break up its DVD and streaming businesses into two separate companies. Just a couple of years later, though, Netflix has gotten its growth back, with higher prices having provided greater revenue and international expansion giving the company plenty of potential for future growth. The shares have more than quadrupled from their 2012 lows.
With stocks near all-time highs, being prudent about which stocks to invest in makes plenty of sense. As you explore opportunities right now, focus on a few key ideas:Step into stocks
Investing in stocks involves taking on more risk than - [By anandjha89]
The markets fell by some 60% from 2008 into 2009. Our balanced income portfolio - 70% bonds to 30% stocks fell by less than 10% from its pre-crash peak. Our balanced portfolio - 60% stocks to 40% bonds fell by some 20%. Our balanced growth portfolio - 75% stocks to 25% bonds fell by some 35%. Our equity portfolio was not available at that time, but certainly the stock market correction was the great equalizer bringing the U.S. (SPY), international (EFA) and Canadian (EWC) markets down by some 60%. You can use those numbers as a general barometer of how asset mix affects volatility, and to match your own risk tolerance level to the asset mix. Are you 'comfortable' with a 60% drop, a 35% drop, a 20% drop or a 10% drop? Mix and match!
Top 10 Performing Companies To Own For 2014: Metals USA Holdings Corp. (MUSA)
Metals USA Holdings Corp., through its subsidiaries, provides carbon steel, stainless steel, aluminum and specialty metals, and manufactured metal components in the United States and Canada. It operates in three segments: Plates and Shapes, Flat Rolled and Non-Ferrous, and Building Products. The Plates and Shapes segment processes and sells steel plates and structural beams, bars, angles, and tubes. This segment provides processing services, such as cutting, cambering/leveling, punching, bending, shearing, cut-to-length, blast and paint, and tee-splitting. It serves customers in the the electrical and appliance manufacturing, fabrication, furniture, commercial construction, machinery and equipment, land and marine transportation, energy, and aerospace industries. The Flat Rolled and Non-Ferrous segment processes and sells flat rolled carbon and stainless steel, aluminum, brass, and copper in various alloy grades. This segment offers processing services, such as slitting, p recision blanking, leveling, cut-to-length, punching, and shearing. It serves customers in the electrical and appliance manufacturing, fabrication, furniture, machinery and equipment, transportation, and aerospace industries. The Building Products segment produces and distributes aluminum and steel building products consisting of covered canopies and walkways, awnings, sunrooms, solariums, and other products primarily for the commercial and residential building products industries. The company is headquartered in Fort Lauderdale, Florida.
Advisors' Opinion:- [By David Tristan Liu]
Murphy USA (MUSA) first caught my attention after Southeastern Asset Management acquired a massive stake ($668mm) in its former parent company Murphy Oil Corporation (MUR) in Q1 2013. One thing about Murphy Oil Corporation I noticed after an initial glance through their 10-K and annual report was its ownership of a valuable fuel and convenience retailer segment with high ROIC, valuable real estate, low CAPEX requirements, and relatively decent growth prospects that was under-followed and whose underlying value was concealed by the parent company's core production and exploration business.
Top 10 Performing Companies To Own For 2014: CSG Systems International Inc.(CSGS)
CSG Systems International, Inc. provides business support solutions primarily to the communications industry. Its suite of solutions comprises Advanced Convergent Platform, a billing and customer care, and business optimization platform; Singleview suite, an integrated customer care, billing, and real-time rating and charging solution; Total Service Mediation (TSM) framework supports offline, and real-time mediation requirements, as well as service activation; and Wholesale Business Management (WBM) solution, a wholesale settlement and routing solution that handles various types of traffic consisting of voice, data, and content. The company?s solutions also include customer interaction management solutions that deliver interactive voice, SMS/text, print, email, Web, and fax messages on behalf of clients; analytics and intelligence services suite delivers an approach for enhancing the customer experience, increasing sales opportunities, and optimizing business; and Content Direct solutions, which enable content providers to manage subscriber preferences and offer digital content. It also licenses software products, such as WBM solution, TSM, and Singleview products; and offers professional services to implement these software products. The company also provides its services to financial services, healthcare, utilities, entertainment, and content distribution industries. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1994 and is headquartered in Englewood, Colorado.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on CSG Systems International (Nasdaq: CSGS ) , whose recent revenue and earnings are plotted below. - [By Rich Duprey]
Telecom industry services provider�CSG Systems (NASDAQ: CSGS ) announced today�that it would initiate the payment of a quarterly dividend to investors, marking the first time in company history it has done so.
Top 10 Performing Companies To Own For 2014: International Montoro Resources Inc (IMT)
International Montoro Resources Inc. is engaged in the exploration and development of mineral properties, focusing on projects in British Columbia, Saskatchewan, and Ontario, Canada. The Company holds a 100% interest in the Malachite Project (New Brunswick). The Company holds a 50% interest in the Red Lake Project (Ontario), the Malachite property consists of 62 claim units comprising 1,352.25 hacteres. The Crackingstone River Project (Saskatchewan) consists of 750 hectare claim block in northern Saskatchewan near Uranium City. The Cup Lake/Donen Claims located in the Greenwood Mining District of B.C. On May 24, 2012, the Company acquired a 100% interest in four mineral claims representing 1,065.10 hactares, which were located in the middle of the west side of the Tacheeda Lake claim block. Advisors' Opinion:- [By Namitha Jagadeesh]
British American Tobacco Plc and Imperial Tobacco Group Plc (IMT) each lost at least 1.5 percent as American peer Philip Morris International Inc. forecast 2014 profit growth below its long-term target. Antofagasta Plc (ANTO) and Vedanta Resources Plc (VED) followed miners lower, sliding at least 2 percent. Johnson Matthey Plc (JMAT) gained 3.9 percent after posting better-than-forecast profit and raising its dividend.
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