Page 25 - Biz X Magazine - July/August, 2014 Issue

portfolio corner Summer Breezes By Steven Mayo falling (compared to the previous quarter), ofen so is the stock, even if on the surface Te winds of change can afect your So, what is the best course of action the story seems unchanged. Tread carefully portfolio, but understanding who you for investors? I believe at this time it is in those high momentum names. are as an investor can help you be more to re-direct your attention to the income In summary, for now, I believe income consistent and patient in your decision generating portion of the portfolio. It’s generating ideas are preferable to growth making, providing more predictable long- always a good time to collect the rents that when adding new positions to portfolios. term performance for your portfolio. dividend stocks provide, as the markets Enjoy the warm summer breezes, and Questions to ask of yourself might bounce around in a narrow range. Monthly keep a frm hand on the helm. It’s “steady include: “Are you a value investor or a and quarterly cheques are provided as you go” time. momentum stock investor?” and “Are you a by fnancial stocks, utilities, pipelines, Quotes to consider . . . growth versus income investor?” telecommunications companies and trust • “You are neither right nor wrong While there is no absolute correct answer, units such as oil & gas trusts, and real estate because the crowd disagrees with you. You I do know companies that grow their investment trusts, to name a few sectors. are right because your data and reasoning dividends tend to outperform markets over Te growth stock ideas may require are right.” ~ Benjamin Graham time, so surely a good portion of a portfolio more patience before adding to that group. • “Delay is preferable to error.” should be dedicated to this group. Te high growth, high momentum names ~ Tomas Jeferson As we enter the summer months, the US are now the high risk names, and a need Steven Mayo is a Vice President, stock market has continued to trade in a to jump back into this group, without Investment Advisor with RBC Dominion tight band, following a common pattern of a suitable waiting period, could be an Securities Inc. (Member–Canadian Investor consolidating afer the big gains from last expensive experience. Normally, a group Protection Fund). Tis article is not year. One should expect a large rise or fall like this, that has experienced a meaningful intended as nor does it constitute investment in any security to be followed by a period of decline like we saw in May, needs to have advice. Readers should consult a qualifed consolidation, although it is human nature good quarterly earnings to keep them on professional before taking any action based to expect otherwise. track. If average earnings estimates are on information in this article. BIZ X MAGAZINE • JULY/AUG 2014 25 BizX2014JulyAug52.indd 25 2014-07-01 7:53 PM