This Day On The Street
Continue to site
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

Look Abroad When You Have an American Trendless Market

NEW YORK (TheStreet) -- You've seen all seen the headlines: "Market Hits a New All-Time High." But you cannot judge the market by the headlines. Headlines can be quite deceiving. If you look at the chart of the Dow below, it is trading barely above where it was trading in January.

^DJI Chart
^DJI
data by YCharts

The Nasdaq has been a wilder ride but equally disappointing. It has barely budged since late January and is also trading close to where it was at the beginning of the year.

This is why, despite headlines to the contrary, I describe this market as "trendless." The Dow, S&P 500 and Nasdaq only tell part of the story. The internals of the market are much worse than market indices suggest, especially for last year's leading stocks and sectors.

^IXIC Chart^IXIC data by YCharts

That said, I am looking abroad for opportunities. I am invested in India through stocks HDFC Bank (HDB) and (TTM), mutual fund Matthews India Fund (MINDX), and the MSCI India Index (INP) exchange-traded fund.

There are also attractive opportunities in Brazil, Mexico and South America. Here in the U.S., given that we are in a trendless market, I favor low P/E names and dividend payers over momentum and high valuation segments of the market.

Low P/E semiconductor stocks like Lam Research (LRCX) and Qualcomm (QCOM) are a couple of good examples. I also like many names such as Continental Resources (CLR), Carrizo Oil (CRZO) and Cimarex Energy (XEC).

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.73 -0.17%
FB $78.81 -0.23%
GOOG $540.66 0.51%
TSLA $230.65 2.00%
YHOO $42.02 -1.20%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs