Mike Philbrick's Top Picks: September 12, 2023 - BNN Bloomberg
Mike Philbrick is the CEO of ReSolve Asset Management.
The sneaky thief known as inflation can cause serious problems for your conventional stock-bond portfolio. When the cost of living increases, the value of your money decreases, making it harder for you to buy what you want. This can have a range of negative effects for investors beyond just being an inconvenience for consumers.
One thing to pay attention to during times of inflation is how stocks and bonds behave in relation to each other. Normally, these two types of assets in a typical investment portfolio have little to no correlation. When stocks are struggling, bonds may offer some protection and vice versa. However, as we've seen in 2022, this correlation may change. Rising inflation can cause central banks to adjust interest rates, which impacts both the bond and stock markets. These changes can have an impact on diversification strategies and returns for investors, and when accounting for inflation, actual returns may vary significantly.
Amid uncertain times, investors can find some positivity in alternative approaches. For instance, managed futures strategies offer the chance to invest in commodities, currencies, bonds, interest rates, and equity indices. These strategies can ultimately make a profit even when prices are rising or falling. Managed futures enable this flexibility to invest in both upswings and down-swings of the market. Additionally, they follow market trends and gain from stable market movements without worrying about the direction. As a result, managed futures have a lower correlation with traditional assets.
In 2022, there was a noticeable trait where both stocks and bonds showed a correlation in their movement. The reason for this was because of inflationary pressures. Additionally, many managed futures tactics aided in improving the diversity of portfolios.
Investors must keep in mind that boosting portfolio diversification decreases the risk related to the portfolio. By diversifying investments, the objective is to equalize them in such a way that when some perform poorly, the others compensate and counterbalance potential losses. This leads to a more dependable flow of returns and lowers the overall unpredictability of the portfolio, providing a more stable investment experience.
Mike Philbrick's Favorite Selections
In the blog, Mike Philbrick, who is in charge of ReSolve Asset Management, talks about his favorite options for investment: the Horizons Marijuana Life Sciences ETF, the Evolve Global Healthcare Enhanced Yield ETF, and the Vanguard Communication Services ETF.
The HMMJ TSX, also known as the Horizons Marijuana Life Sciences ETF, is an investment fund that focuses on companies in the cannabis industry. This ETF provides investors with the opportunity to invest in a diverse portfolio of marijuana-related stocks and has gained popularity as the cannabis industry continues to grow. By investing in the HMMJ TSX, individuals can potentially benefit from the success of the cannabis market without having to invest in individual stocks. Additionally, this ETF may provide investors with a level of diversification that they may not be able to achieve on their own. Overall, the HMMJ TSX is a popular choice for those interested in investing in the cannabis industry.
The goal is to mimic the North American Marijuana Index's results, excluding expenses. This index tracks North American publicly traded companies with significant involvement in the marijuana industry, all with equal weighting. Those who oppose the legalization of marijuana are becoming more open minded as the public's approval for recreational marijuana increases. Due to the sector's low performance and low level of investor attention, it has the potential to be appealing.
The ETF known as Evolve Global Healthcare Enhanced Yield (LIFE.B on the Toronto Stock Exchange) has seen some recent changes.
The fund aims to imitate the progress of the Solactive Global Healthcare 20 Index. This enables investment in the most prominent healthcare organizations worldwide that are categorized under the FactSet Sector Health Technology by following an equal-weighted scheme. Moreover, it sells secured options on almost a third of the securities in the portfolio to lessen the potential risks and earn revenue. The amount of option sales may fluctuate depending on the volatility of the market and other factors.
The VOX NYSEARCA (Vanguard Communication Services ETF) is a popular investment option for individuals interested in the communication services sector. It offers exposure to a diverse range of companies including telecommunications, media, and internet services. This ETF seeks to track the performance of the MSCI US Investable Market Index, which includes companies such as Verizon, Facebook, and Comcast. Investing in VOX allows individuals to diversify their portfolio within the communication services sector. This ETF provides a well-rounded approach to investing in this sector with exposure to a variety of different companies. Additionally, VOX has a relatively low expense ratio, making it an attractive option for investors seeking low-cost investment opportunities. As with any investment, it is important to do your research and consider your own investment goals and risk tolerance before making a decision. However, VOX can be a great option for those looking to gain exposure to the communication services sector.
This section is talking about a fund that follows the MSCI US Investable Market Index (IMI)/Communication Services 25/50. The fund uses a strategy called indexing investment, which means it tries to match the performance of this index. This index includes stocks from big, medium, and small US companies in the communication services industry. As of July 31, 2023, the index had about 19.97% exposure to META, 11.84% exposure to GOOGL, and 9.8% exposure to GOOG. All other individual holdings in the index were less than 5%.
Here are some of our previous choices from April 3, 2023:
Mike Philbrick's Previous Selections The brilliant businessman and former finance expert, Mike Philbrick, has made some remarkable selections in the past which had substantial outcomes. In his excellent work as a portfolio manager, Mike demonstrated his proficiency and skills in selecting the most lucrative portfolios for his clients. His past selections were a true reflection of his dedication to investment and his extensive knowledge in the finance industry. It's impossible to overlook his previous choices, which have provided valuable insight into his investing strategies. It's clear that Mike Philbrick's past picks demonstrate his remarkable talent and expertise as a portfolio manager. His legacy in the finance industry will undoubtedly be remembered, and investors can learn a lot from his investment methods.
In this blog entry, Mike Philbrick, the CEO of ReSolve Asset Management, talks about the stocks he has previously selected. These include the SPDR S&P Semiconductor ETF, the Purpose Gold Bullion Fund ETF, and the WisdomTree Japan Hedged Equity ETF.
The SPDR S&P Semiconductor ETF (XSD NYSEARCA) is a type of investment fund that focuses specifically on the semiconductor industry. It is traded on the NYSE Arca stock exchange. This ETF aims to provide investors with exposure to a diversified portfolio of semiconductor companies, including those involved in the design, manufacture, and distribution of semiconductor products. Its holdings include companies such as Intel, Nvidia, and Broadcom. By investing in the SPDR S&P Semiconductor ETF, investors can benefit from the growth potential of the semiconductor industry. This industry plays a critical role in the development and advancement of technology, and is expected to continue to grow in the coming years. Overall, the SPDR S&P Semiconductor ETF is a great investment option for those looking to gain exposure to the semiconductor industry and potentially benefit from its future growth prospects.
The KILO TSX or Gold Bullion Fund ETF serves a specific purpose. It is a valuable investment tool for those who want to invest in gold bullion since it tracks changes in the price of gold. As an investor in this ETF, you stand to make gains as the price of gold increases. This is a unique financial instrument that allows investors to buy and sell 'units' of gold in a way that is similar to investing in stocks. The KILO TSX has the potential to provide diversification to one's portfolio, making it more attractive to investors who are looking to spread their risk across multiple asset classes. If you are interested in investing in gold, the KILO TSX is definitely worth considering.
The DXJ NYSEARCA is an investment fund that specializes in equity from Japan while hedging against currency fluctuations. It is a great option for investors who want to take advantage of the Japanese market while minimizing the impact of exchange rate shifts. The fund is managed by WisdomTree and has a solid track record of performance. If you are interested in Japanese equity investments, the DXJ NYSEARCA is definitely worth considering.
The average total return is seven.