This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Why stocks look good for the long haul

Stocks in this article: ADP DOM GE MRK MSFT PAYX PNC WFC WM

By Gregg Giboney

The Timberline Dividend & Growth portfolio on the Covestor platform started 2014 on a positive note with a return of 2% for the first quarter. The portfolio finished slightly above the 1.8% performance of the S&P 500 Index (SPX).

In my opinion, equity investors were encouraged by reasonable valuations, corporate earnings power, and the Fed's sensitivity to data and its gradualist strategy in normalizing monetary conditions.

My portfolio performance was led by strength in financial, pharmaceutical and utility companies. Specific strength (returns greater than 10%) was derived from PNC Financial (PNC), Wells Fargo (WFC), Dominion Resources (DOM), Merck (MRK) and Microsoft (MSFT).

The weakest areas were in industrial General Electric (GE) and Waste Management (WM) and payroll processing companies Automatic Data Processing (ADP) and Paychex (PAYX) that experienced modest declines.

As many as five bank positions announced intentions to raise dividends after annual stress test results were released in late March. Such dividend developments will be detailed the next quarterly report.

In my opinion, stocks continue to have productive long-term return potential. Short-term predictions are always difficult, and I have no way of knowing for sure, but it will be interesting to see if warmer weather contributes a positive bounce in the stock market and leads to further improvement in economic expectations.

Though early, we are also nearing an important political season and mid-term politics that will gain greater attraction and speculation as it approaches. These and other crosscurrents are nothing new to the markets and may lead to some volatile conditions. In my mind, none appear to have the wherewithal to derail the long-term appeal of equities.

DISCLAIMER: The investments discussed are held in client accounts as of March 31, 2013. 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. Past performance is no guarantee of future results.

Gregg Giboney

Gregg Giboney

Within the Timberline Dividend & Growth strategy, Timberline takes significant measures in the management of portfolios and the integrity of

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs