The real-money Inflation-Protected Income Growth portfolio just finished a strong week, gaining a touch above $500 in the time covered since last week's update. For a portfolio that started a mere seven months ago with $30,000, last Friday's closing value of $34,722.56 represents what would ordinarily be an astounding performance.
Still, the portfolio's total return of 15.7% �in just over seven months trails the S&P 500's (SNPINDEX: ^GSPC ) gain during that time. That index has gained around 16% during that same window, and when you add the dividends paid by S&P 500 companies to the total return, the index has easily outperformed the iPIG portfolio.
A strong case can be made that if your investing strategy can't beat a reasonable benchmark index, you'd be better off investing in the index. The thing is, in a rapidly rising market like the one we've been experiencing recently, it's very possible for the market to stay ahead of even proven winning strategies and master investors. Even Warren Buffett may be on track to trail the market for the first five-year period in basically forever.
Hot Safest Companies For 2016: Market Leader Inc(LEDR)
Market Leader, Inc., together with its subsidiaries, provides software-as-a-service-based business and marketing solutions for real estate professionals primarily in the United States and Canada. It offers real estate agents and brokerage companies with software-as-a-service based products, as well as online lead-generation, online prospect management, online real estate portal content and advertising, and customer coaching and training solutions. The company also offers consumers with free access to the information and tools they need throughout the home buying and selling process through its national consumer real estate sites. Its consumer Web sites include: JustListed.com, a service that notifies home buyers as soon as new homes hit the market; HouseValues.com, a service, which provides home sellers with market valuations of their current homes; and HomePages.com, a real estate portal that enables consumers to see the home listings in their area, view detailed neighbor hood and school data, compare recent home sales, find local real estate agents, and find the value of their own homes. In addition, the company offers Growth Leader, a Website and customer relationship management tool for real estate agents; RealtyGenerator, a lead-generation and lead management system for real estate brokerage offices; and ActiveRain.com that provides professional networking, referral, recruitment, content syndication, and online marketing services for professionals in real estate and related businesses. Market Leader, Inc. markets its products to individual agents and brokerage offices directly, as well as through marketing partnerships with real estate franchise networks. The company was formerly known as Housevalues, Inc. and changed its name to Market Leader, Inc. in November 2008. Market Leader, Inc. was founded in 1999 and is headquartered in Kirkland, Washington.Advisors' Opinion:
- [By Michael Lewis]
For a bit of context, competitor Trulia (NYSE: TRLA ) is in negotiations to buy Market Leader (NASDAQ: LEDR ) for $355�million. Market Leader is a smaller (and growing) business that's similar to both Zillow and Trulia. Since Market Leader is still earnings negative, we can't compare it on a P/FCF basis, but we can look at other metrics. For one, Market Leader trades at a still-ridiculous-but-slightly less-so 57.2 times forward earnings. It trades at 6.4 times last year's sales. Zillow trades at 16.4 times last year's sales. Management expects sales to hit (on the high end) $182 million -- that implies a price of 10.55 times forward sales. If they double a year or two after, which would be unbelievably phenomenal, it would trade at 5.3 times sales.
Hot Warren Buffett Companies To Own In Right Now: Vanguard Reit Etf (VNQ)
Vanguard REIT ETF (the Fund), formerly known as Vanguard REIT VIPERs, is an exchange-traded share class of Vanguard REIT Index Fund. The Fund seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of an index that measures the performance of publicly traded equity real estate investment trusts (REITs). Vanguard REIT ETF employs a passive management or indexing investment approach designed to track the performance of the MSCI US REIT Index (the Index), an index of United States property trusts that covers about two-thirds of the value of the entire United States REIT market.
Vanguard REIT ETF normally invests approximately 98% of assets in stocks issued by equity REITs. The Fund invests in the stocks that make up the Index, and the remaining assets are allocated to cash investments.Advisors' Opinion:
- [By Dan Caplinger]
Keeping it simpleSome advisors will suggest that you're giving up big potential returns if you don't pick individual stocks. But a portfolio that relies on the broad-based ETFs Vanguard Total Stock Market (NYSEMKT: VTI ) , iShares Core Bond Market (NYSEMKT: AGG ) , Vanguard REIT (NYSEMKT: VNQ ) , or other similar ETFs from other fund companies will get you most of the way to the returns that you need in order to retire comfortably. These three ETFs are particularly useful because they come with low fees, but as long as the ETF you choose doesn't charge too much, there are plenty of strong options to pick from. Insurance coverage can be extremely difficult to understand, and the costs involved can be high. Sticking with basic insurance early on and later adding features as you become more familiar with the risks involved might not always be the least expensive solution to your insurance needs, as in some cases, the earlier you get coverage, the less it costs. Moreover, you won't always qualify to get insurance if some event occurs later in life that boosts your risk to the point at which insurance companies won't offer you coverage at all. But the wait-and-see strategy does have the benefit of preventing you from getting coverage that might well be obsolete or unnecessary by the time you seek to use it.
Even though retirement planning can get complicated in a hurry, the key to remember throughout much of your career is that it's impossible to plan for every contingency you'll face. As a result, the simpler way to handle planning for retirement is to address the threats that you can control while maintaining as much flexibility as possible to handle the threats you can't control -- or might not even be aware of. A few examples include:
Admittedly, these simple solutions won't always take care of every contingency, and they can leave you vulnerable to certain risks that require advanced planning techniques. But
- [By Bill Stoller]
After a banner 2013, the overall market has had a challenging start to 2014. However, these four companies have been crushing it: Alexander Real Estate (NYSE: ARE ) , BioMed Realty Trust (NYSE: BMR ) , CommonWealth REIT (NYSE: CWH ) , and Sun Communities (NYSE: SUI ) early on in 2014 vs. the S&P 500. Their relative out-performance can also be seen when compared to the Vanguard REIT Index ETF (NYSEMKT: VNQ ) a good yardstick to measure sector performance.
- [By Dan Caplinger]
3. Real-estate investment trusts
Rate-sensitive REITs took another big hit over the week, with the Vanguard REIT ETF (NYSEMKT: VNQ ) dropping more than 5%. Leveraged mortgage REITs saw even worse losses, with Annaly Capital (NYSE: NLY ) falling more than 7% and American Capital Agency (NASDAQ: AGNC ) seeing 8% declines.
- [By Howard Gold]
In May, I said real estate investment trusts (REITs) ��ave outperformed the S&P 500 for 11 of the last 16 quarters��and so ��'d be inclined to take at least some profits.��That column ran pretty close to REITs' all-time high and the Vanguard REIT Index ETF (VNQ) has lost 11% of its value.
Hot Warren Buffett Companies To Own In Right Now: Medivation Inc.(MDVN)
Medivation, Inc., a biopharmaceutical company, focuses on the development of small molecule drugs for the treatment of castration-resistant prostate cancer, Alzheimer?s disease, and Huntington disease. The company?s product candidates under clinical development include MDV3100, which is in Phase 3 development for the treatment of castration-resistant prostate cancer; and dimebon, which is in Phase 3 clinical trial for the treatment of Alzheimer?s disease and Huntington disease. It has collaboration agreements with Pfizer Inc. to develop and commercialize dimebon; and Astellas Pharma Inc. to develop and commercialize MDV3100. The company was founded in 2003 and is based in San Francisco, California.Advisors' Opinion:
- [By Motley Fool Staff]
Todd Campbell: In my view, the most disappointing trial failure this year has got to be Exelixis' (NASDAQ: EXEL ) study of cabozantinib�in prostate cancer patients. Investors had high hopes for cabozantinib given that competing prostate cancer treatments developed by�Johnson & Johnson� (NYSE: JNJ ) and�Medivation� (NASDAQ: MDVN ) had gone on to achieve billion dollar sales run rates following their approval.
Hot Warren Buffett Companies To Own In Right Now: OM Group Inc.(OMG)
OM Group, Inc. develops, produces, and markets specialty chemicals, advanced materials, and electrochemical energy storage products worldwide. The company operates in three segments: Advanced Materials, Specialty Chemicals, and Battery Technologies. The Advanced Materials segment manufactures inorganic products using unrefined cobalt and other metals and serves the battery materials, powder metallurgy, ceramics, and chemical end markets. It offers cobalt powders, precursors, chemicals, pigments and ceramics, and various raw materials. These products enhance the electrical conduction of rechargeable batteries, as well as strengthen and add durability to diamond and machine cutting tools and drilling equipment. The Specialty Chemicals segment offers electronic chemicals for the printed circuit board, memory disk, general metal finishing, electronic packaging and finishing, and photovoltaic markets. This segment also provides advanced organics comprising additives and driers for paints, and printing inks; rubber adhesion promoters for tires; composite and other catalysts for chemicals; and fuel oil additives, lubricants, and grease additives. In addition, it offers ultra pure chemicals used in the manufacture of electronic and computer components, such as semiconductors, wafers, and liquid crystal displays; and photo-imaging masks, including high-purity quartz or glass plates containing precision, microscopic images of integrated circuits; and reticles for the semiconductor, optoelectronics, and microelectronics industries under the Compugraphics brand name. The Battery Technologies segment provides battery products, primary and secondary batteries, battery management systems, battery chargers, and energetic devices for defense applications; primary and secondary batteries for satellites, aircraft, and the packaging of cells; and miniature batteries to power implantable medical devices. The company was founded in 1991 and is headquartered in Cle veland, Ohio.Advisors' Opinion:
- [By Canadian Value]
Position % of Fund Assets 1) First American Financial Corp. (FAF) 7.0% 2) Apple, Inc. (AAPL) 6.5% 3) Coinstar, Inc. (CSTR) 4.8% 4) EMC Corp. (EMC) 4.4% 5) Coach, Inc. (COH) 4.4% 6) Kohl's Corp. (KSS) 4.1% 7) Blucora, Inc. (BCOR) 4.0% 8) Tetra Tech, Inc. (TTEK) 3.1% 9) OM Group, Inc. (OMG) 3.0% 10) American International Group, Inc. (AIG) 2.8% TOTAL 44.1% One area that we believe still offers some value in the market is in high quality, large��ap technology stocks that may be momentarily out��f��avor as they transition from rapid growth to slower growth. In particular, we become interested when that transition is also accompanied by a change in capital allocation policies designed to return more cash to shareholders in the form of dividends and share repurchases. We believe that Apple and EMC are two of the absolute highest quality technology businesses in the world and both have recently announced very material, shareholder��friendly changes to how they will allocate capital.
- [By Seth Jayson]
There's no foolproof way to know the future for OM Group (NYSE: OMG ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.
- [By Laura Brodbeck]
FridayEarnings Expected From: Chevron Corporation (NYSE: CVX), OM Group, Inc. (NYSE: OMG), Public Storage (NYSE: PSA) Economic Releases Expected: �US ISM manufacturing index, Canadian manufacturing PMI, British manufacturing PMI, Norwegian unemployment rate
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Hot Warren Buffett Companies To Own In Right Now: Guggenheim Multi-Asset Income ETF (CVY)The Guggenheim Multi-Asset Income ETF (the Fund), formerly Claymore/Zacks Multi-Asset Income Index ETF, seeks investment results that correspond generally to the performance of an equity index called the Zacks Multi-Asset Income Index (the Index). The Index consists of approximately 125 to 150 securities selected, based on investment and other criteria, from a universe of domestic and international companies. The universe of securities within the Index includes United States-listed common stocks, American depositary receipts (ADRs) paying dividends, real estate investment trusts, master limited partnerships, closed-end funds and traditional preferred stocks. The companies in the universe are selected using a methodology developed by the index provider, Zacks Investment Research, Inc. The Fund, using a passive or indexing investment approach, seeks to replicate the performance of the Index. The Fund�� investment advisor is Claymore Advisors, LLC. Advisors' Opinion:
- [By Genia Turanova]
Moreover, investors can do one-stop shopping for most income classes through a single ETF as well. One interesting choice here is Guggenheim Multi-Asset Income (CVY).