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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Why I'm sticking with my 2014 game plan

Stocks in this article: NNNOSPX

By Charles Sizemore

charles-sizemore

The end of June, as the halfway point, is a good time to stop and reevaluate the assumptions you brought into the year. Are your strategies still working; and if not, what is your game plan for the second half of the year?

So with that in mind, let's take a look at what I was saying in January:

You will see a handful of consistent themes across Sizemore Capital portfolios:

1) I am overweight Europe and emerging markets.

2) I am overweight dividend-paying U.S. equities.

3) I am underweight non-dividend-paying U.S. equities.

While I remain broadly bullish on U.S. equities in general, in my view they no longer offer compelling value. Looking overseas, I see much more attractive pricing and better opportunities for capital gains.

Europe, by and large, has not participated in the past five years' worth of bull markets, and the continent is only now starting to emerge from its post-crisis, austerity-driven recession.

And most emerging markets, which collectively were a fantastic asset class for most of the 2000s, have traded sideways or down since 2011.

Finally, now that tapering by the U.S. Federal Reserve is well underway, I expect investors to reevaluate income securities. Dividend paying stocks and, particularly, "bond substitutes" such as REITs were dumped indiscriminately in 2013 as investors, terrified of what tapering might mean, sold first and asked questions later.

But as the reality sets in that inflation remains near generational lows and Fed tapering will be a slow process, I expect all yield-focused investments to enjoy a healthy rally in the first half of 2014.

For the most part, these were the right calls to make. U.S. stocks have performed a little better than I expected, but gains have been modest. Bond yields have retreated, and "bond-like" REITs have enjoyed good returns.

1 of 2

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!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

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