september 24, 2018
The US economy continues to develop at one of the best rates of growth for any of the primary established economies in the world, but there should be more to come from the economy and its underlying consumer and business contributions.
Average book value for the S&P 500 companies continues to climb quarter after quarter, from the fourth quarter of 2016 to the most recent by an average annual compound rate of nearly 4%. This means that, in addition to rising stock prices, we’ll see rising underlying business values on top of rising revenues, which are expanding at an average annual compound rate of nearly 8%.
One of the best industries to be in continues to be the transformative market of petroleum. In this issue, I’ll make my expanded case for why you need to have a significant exposure upstream and downstream for growth and income, and I’ll share the best companies to buy and own right now. Then I’ll go through our model portfolios and discuss some other opportunities, including a few new buys in the utility markets for both the Total Return Portfolio and our Model Mutual Fund Portfolios.