Advertisement
Singapore markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • Nikkei

    40,369.44
    +201.37 (+0.50%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Bitcoin USD

    69,937.11
    -639.20 (-0.91%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • FTSE Bursa Malaysia

    1,536.07
    +5.47 (+0.36%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

6 Investment Tips to Boost Your Portfolio

If you have time on your side, there are certain investments to make that are very likely to increase in value in the future.

Gold, for instance, was about $235 an ounce in 1970 (adjusted for inflation). Now it's nearing $1,300 -- so you may feel like King Midas if you've held on to coins that long. While it's not an exact science, some types of investments, like gold, tend to perform well over time.

Here are a few to keep in mind.

Unpopular asset choices. Think out of the box and patiently wait for the right moment, says Martin Buchanan, private wealth advisor at Buchanan Capital in Oklahoma City. "In our portfolios, we often find success in patiently monitoring out-of-favor asset classes until we see an attractive entry point," he says. "For example, the oil and gas industry has had one of the worst downturns in its history, but investors who patiently waited and bought in at the most recent bottom have profited handsomely."

ADVERTISEMENT

[Read: A Big iPhone Slump Bites Into Apple (AAPL).]

This can also be true for investments that seem volatile -- they may prove to be solid in market fluctuations. "Gold has experienced several years of falling prices, but with an increase in market volatility and possible growth of inflation, gold has become one of the best-performing assets of 2016," Buchanan says.

Low-cost mutual funds and bonds. These are tax-efficient holdings that have a strong reputation, says Cary Cates, a certified financial planner at Grunden Financial Advisory in Denton, Texas, and adjunct professor at University of North Texas. "The Vanguard Total Stock Market index fund, the Vanguard Total International Stock index fund and Vanguard Total Bond Market index fund bonds are good options," he says. "The costs of those range from 0.05 percent to 0.06 percent. These are very inexpensive, and they're not likely to underperform the market."

Make money with dividend stocks. Blue-chip dividend stocks in a diversified portfolio are a wise investment, says David Born, president and founder of Born Investment Management in Austin, Texas.

One of the best is Teva Pharmaceutical Industries (TEVA): "It's been pulled down by all of the goings-on and political rhetoric surrounding Valeant (VRX). But Teva is a low-price leader in the price competitive generic field. It's sporting a 10 percent earnings yield and decent growth prospects. This stock can be a port in the storm when economic malaise strikes."

[Read: How to Find a Financial Advisor.]

AT&T (T) also gives solid dividends and consistent growth. "They have raised their dividend for 32 consecutive years and the leadership at the company seems committed to continue that trend," says Jonathan Polson, portfolio manager and investment advisor for Southern Trust Wealth Management in Greenville, South Carolina.

Avoid buying last year's best-performing stocks and funds. Instead, says Nathan Yates, director of research for Forward View in Clintwood, Virginia, consider the Becker Value Equity Fund (BVEFX), "a rare large-cap fund that isn't a closet index fund. Becker's management team has a long track record of outperforming their benchmark, and the company's fee structure is very reasonable," he says.

His favorite international mutual fund is Oberweis International Opportunities Fund (OBIOX): "Oberweis utilizes a quantitative methodology to minimize risk while finding mispriced stocks. Expect continued profits from this great fund," Yates says.

[See: The 10 Best Ways to Buy Tech Stocks.]

Track quarterly reports. The website Search13F.com includes a tool that allows retail investors to track hedge fund portfolios. Its strategy is to identify stocks that saw a significant increase in institutional ownership, are similarly priced to the previous quarter and have a small- or mid-capitalization to allow for a larger upside, says Irina Blinova, general manager, Search13F.com in Cambridge, Massachusetts. The firm is currently highlighting Marinus Pharmaceuticals (MRNS) because the biotech stock saw an impressive 58 percent increase in the number of shares bought by hedge funds, Blinova says.

Follow the masters. Robert R. Johnson, president and chief executive of The American College of Financial Services in Bryn Mawr, Pennsylvania, suggests Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) for "everyone's portfolio." Because it's well diversified, there is less risk, he says. "The stock is often mistaken for an investment fund, and Warren Buffett's historical stock picking prowess is cited as a reason for the success of the firm." The company owns diverse firms including See's Candies, Dairy Queen, Nebraska Furniture Mart, and NetJets.



More From US News & World Report