March Madness: Final Four Investing Bracket 2018

Dear Mr. Market:Unknown-2

What’s more exciting to watch: Duke versus North Carolina or Apple versus Amazon? If you’re reading this you know by now that it’s not a trick question but rather our annual opportunity to have some fun spinning the NCAA college basketball tournament into a platform to share our favorite investment themes.

My Portfolio Guide was the first investment firm to publish a March Madness investing tournament where we share our picks and match them up against each other. We break down and assign each of the four “regions” with an asset class and then pick teams (companies) that we think have the best chance at doing well relative to others.

This is the eighth year we’ve done this and it’s become one of the most popular articles on the entire internet!

Click the following link to see the entire bracket for 2018:

Final Four Investing Bracket Picks 2018 

 

Large Cap

Many people now have the rearview mirror or armchair quarterback mentality right now. If you’re to be honest with yourself there are very few folks we met at this point last year that said without question that the stock market would soar to record highs. As a matter of fact, it was quite the opposite. Think back to the start of 2017 as most of us were still digesting the fact that Trump won the election. Most pundits felt that the “Trump bump” would be short lived and that the one thing the stock market doesn’t like is uncertainty …and we had plenty of it!

All that being said, we couldn’t have been more clear that if you kept your politics out of it you could have had a nice year! The easy trade was betting on America and the Large Cap asset class turned in a fine year. Guess what? We still think there is room to run here and the recent correction we experienced is exactly what the doctor ordered.

Key Match-up:

#2 US Steel (X) vs. #3 Reliance Steel (RS)

Unless you’ve been living under a rock you’ve heard that President Trump wants to reset the playing field on trade imbalances. Continue reading

Is it time to take a bite out of Apple?

apple dmmDear Mr. Market:

For years the world has had a love affair with Apple (AAPL). It has become an amazing company delivering mind-boggling performance to its shareholders while creating a loyal following with its consumers. Over the last 10 years it has rewarded its investors with returns over 1,400%! As volatility has returned to the markets many are asking if this ship has sailed and whether Apple will become another technology stock of the past, replaced by the new ‘tech darlings’ of today. In our opinion… this statement couldn’t be any further from the truth. We feel that the market is presenting investors with a rare buying opportunity in a phenomenal company that is positioned to remain an industry leader for years to come.

Why is it that people want to buy a stock as it breaks all-time highs? It’s like going into your favorite retail store only on days when they announce that they have marked up all the items you wish to buy. If you were tempted to “take a bite out of the Apple” as the stock approached $140, why wouldn’t you want to buy that same company for almost $30 less per share? Did something change dramatically with the company, their management, or the competition? Continue reading