The uncertainty regarding when the Fed will start tapering off the quantitative easing is making investors uneasy as to the short-term outlook; however the following long-term views remain valid, irrespective of the timing of the tapering:
- Across the globe, economic growth is accelerating,
- FY1 to FY3 EPS figures are projected to be positive,
- Excess liquidity needs to be put to work,
- Equity valuations are attractive on a relative risk-reward level,
- Equities offer the best long-term risk-reward opportunities.
The All-Star investment theme consists of top-ranked companies emerging from a screening of worldwide key industry players. The following company metrics were assessed during the selection process:
- Management quality,
- Dividend policy (sustainability of growth),
- Attractiveness of relative valuation.
Moreover, the principal business drivers underpinning these companies are mega-trends and these business opportunities provide controlled and stable growth. Adding these names into the portfolio during times when volatility levels are above average is a good way to expand one’s strategic equity holdings.
List of well-positioned (company metrics, risk-reward drivers) global players:
Top 10 trade ideas for 2014 Proposition 5 All-Star companies.pdf
Quick-links to company reports: ABBN,SIE,SYNN,RDSA, AAPL, SLB, BAC, V, MA, PFE, ROG, DIS, INTC