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

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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