Ed. note: Here is another installment from longtime reader Myron Martin. Myron has agreed to our trading restrictions (he won’t trade the stocks he mentions for three days), but we have not reviewed, approved or screened his stocks or ideas, and the opinions he expresses are solely his own. Myron’s past commentaries can be seen here.
Surprise for Gumshoe Irregulars! Travis has agreed to a three month trial of twice-per-month shorter columns (don’t laugh, no guarantees), to allow me to better track the markets on a timely basis. For this issue I will again bring you picks from a mixture of sectors that I hope will provide something of interest to all of you. As you know by now, my picks are wide ranging, and probably most of you, like me, do not have enough capital to cover all your areas of interest. One solution to getting exposure to a wide range of diversified stocks is to use ETF’s, which are more capital-efficient than mutual funds, lower cost, and precision-targeted to sectors and countries you might not otherwise be able to access with individual stocks. Sometimes it is better to let the professionals do it for you: less stressful and more capital efficient.
There are two areas that almost all professional analysts agree the retail investor should have at least some exposure to. They are emerging markets and in particular dividends! It is well known by market watchers that growth in numerous foreign markets has been far superior to that of the western nations, particularly in recent years, so it makes sense to have a small portion of your portfolio exposed to that growth. There are many multi-national companies based in foreign nations that are hardly household names for the average investor, so having professionals give you exposure to the strongest international companies outside of your home market makes sense.
With that background, allow me to introduce you to a newly launched fund from Wisdom Tree, a successful fund group with which I have had good success over the years, with a number of funds. Now keep in mind that this is a new fund just launched, so it has no track record, but read the prospectus here. I am considering a small allocation to the Wisdom Tree Emerging Markets Dividend Growth Fund (DGRE), $25.65, which looks like a great vehicle to tap into both objectives, but do your own “due ...