"New year concerns could potentially become reality " by: John Sample

   A New Year brings new concerns for this market to overcome. The attack on the Iranian military leader put the brakes on the market last week. 
   It appeared the concerns would carry over to this week but that is what we get for assumptions. The market was in negative territory from the beginning Monday only to turn around late in the day to move to positive territory. 
   I still believe January will be good for your retirement portfolio’s value, but I wouldn’t get lazy as February could prove to be less than candy and roses.
   Speaking of negative observations proven wrong, look at Tesla. 
   While Mr. Musk didn’t help himself with his social media comments, his company has done nothing but beat analysts’ estimates. This week, Musk announced that the first Type 3 cars made in China were being delivered from a plant that didn’t exist 10 months earlier. He sent his spacecraft to the space station and landed the rocket back to a floating pad in the ocean. And, he is focusing on battery technology. 
   He continues to bring out new car models and an incredibly bad PR move on the shatterproof glass in its truck hasn’t slowed sales. 
   In fact, the stock now trades at an all-time high and the short traders were taken to the woodshed.
   Communications services were the best sector last year for gaining in value. 
   Look at what Apple has done. The iPhone maker moved above $300 and some are predicting $400. 
   While phones are the bread and butter, wearables are flying off the shelves and Apple TV is making its presence known. Along with Facebook, Amazon, Netflix and Google, technology and social media are impossible to ignore.
   Other sectors are having to adapt. 
   Goldman Sachs is trying to unleash hidden value by breaking into four segments of global markets, investment banking, asset management and consumer and wealth management. 
   This is a problem of large conglomerates and is the latest trend of companies spinning off segments to reflect their true value. Picking up these spinoffs has proven lucrative over the last several years.
   The beginning of the year is a great time to reflect where you have invested.
 and decide if changes should be made. 
   I would look at pipeline company Enterprise Products Partners, which comes with a significant dividend. 
   You might look overseas at Royal Dutch Shell. 
   For safety over growth, consider Real Estate Investment Trusts like Prologis or a utility such as the convertible for American Electric Power or the common of Duke Energy. One last twist might be the preferred for JP Morgan. 
   For the daring, it is impossible to ignore the above-mentioned FANG stocks. 
   Don’t forget that those stocks trade at significantly high multiples. 
   Optimists argue these companies will provide earnings that will more than justify the current price and further rising prices. 

 

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