diversification

A recent letter from a member asked a question that touched on a number of topics of wide current interest.

Q: Hi, Pat: I enjoy your newsletters and appreciate the research that you do. I use your recommendations when choosing holdings for my portfolio. I’m 74 years old and still farming but cutting back significantly....

Many emerging markets seen slower growth lately. That’s because a growing U.S. economy and rising interest rates have pushed up the U.S. dollar. This typically results in capital flowing to the U.S. from emerging markets. That hurts investments in those economies....

When you learn how to invest in stocks, focus on a strategy that takes advantage of a diversified portfolio of high-quality investments

Here’s how to find undervalued stock picks—those that are reasonably priced, if not cheap, in relation to their sales, earnings and assets—tand maximize your long-term profits

We think foreign stocks can safely make up 10% of a conservative investor’s portfolio. One way is through exchange-traded funds (ETFs) with an overseas focus.


The best of those ETFs continue to offer very low management fees and well-diversified, tax-efficient portfolios of high-quality stocks.


Here’s a look at four international ETFs we see as suitable for new buying and two others we feel you should continue to hold....

Dear safe-money investor:


We’ve selected our top picks for 2019—one stock, one real estate investment trust (REIT) and one exchange-traded fund (ETF). Each offers an attractive combination of growth prospects and a reasonable price.


We feel that investors profit the most by holding a well-balanced portfolio of high-quality stocks and REITs—like our first two recommendations....

GOODYEAR TIRE & RUBBER CO. $19.53 (Nasdaq symbol GT; TSINetwork Rating: Average) (330-796-2122; www.goodyear.com; Shares outstanding: 233.0 million; Market cap: $4.4 billion; Dividend yield: 3.3%) is one of the world’s largest tire makers....

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Declining commodity prices and international sanctions have hurt the Russian economy....

Declining commodity prices and international sanctions have hurt the Russian economy. But despite that, the country has proved surprisingly resilient. The economy is on a modest growth path, government finances are in reasonable shape, inflation is under control and the currency has stabilized.


Here is one ETF that provides exposure to the top Russian public companies.


VANECK VECTORS RUSSIA ETF $20.08 (New York symbol RSX; TSINetwork ETF Rating: Aggressive; Market cap: $1.5 billion) tracks the MVIS Russia Index, which includes publicly traded companies that are incorporated in Russia or that are incorporated outside of Russia but have at least 50% of their revenues/related assets in Russia.


Energy firms account for 41% of its assets, with commodities at 23%; Financial Services, 12%; Consumer Defensive, 8%; and Technology, 7.0%.


The ETF holds a portfolio of 27 stocks; the top 10 holdings make up a high 56% of its assets....

SPDR S&P 500 ETF $258 (New York symbol SPY) holds the stocks in the S&P 500 Index; they are 500 major U.S. companies chosen based on their market cap, liquidity and industry group.


The highest-weighted stocks for the SPDR S&P 500 ETF are Microsoft, 3.8%; Apple, 3.4%; Amazon.com, 2.9%; Alphabet, 2.9%; Berkshire Hathaway, 1.9%; Johnson & Johnson, 1.6%; Facebook, 1.6%; JPMorgan Chase, 1.5%; ExxonMobil, 1.4%; Pfizer, 1.2%; and UnitedHealth, 1.3%....