CLS has developed key investment themes for 2013, let’s identify them and take a look at some of the ways these can be implemented. Below I offer some ‘resolutions’ to get the ball rolling in the New Year.
Theme: Creative Diversification
Be More Active – One of the more popular trends in new ETF’s lately has been actively-managed ETF’s. There is a slew of promising funds out there that can offer attractive returns even when the current yield or return environment sours. One positive about actively-managed ETF’s is that most have a consistent rules-based strategy rather than based on sole manager discretion.
Get Into Debt – Looking for opportunity internationally does not just apply to equities. Believe it or not, there are still a few countries around the world where interest rates are not zero. As the balance sheets of emerging governments and corporations strengthen, opportunity exists to pick up yield.
Themes: Quality, Commodities
Eat Healthier – Not only are quality companies with strong balance sheets and growing dividends attractive, those that are (responsibly) buying back their own stock can offer excess returns. And just to keep the double-meanings going – As the population of the world continues to explode upward, the price of crops and the companies that help them grow will likely accelerate also.
Content provided by Grant Engelbart, CLS Investment Research Analyst