Monday, February 16, 2015

Investing Today:Top Positions February 2015

I think stocks are fairly valued,relatively cheap compared to bonds,said famed money manager Bill Miller,Chairman and Chief Investment Officer at Legg Mason Global Asset Management;but I also think there are too many cross-currents here:Greece,Ukraine.There's a fair degree of interest in the Fed of moving off the zero mark.I think they want to do it because of the very low rates.I would think the 10-year Treasury will settle somewhere at 4-5%,its normal rate.
Amazon had a bad year last year,and after Q4 we went into it heavily,to our largest position.They have a market cap of 170 billion;they haven't sold stock;and they make a lot of cash,which to me is more important than profits.The Apple Pay and Apple Watch should do very well this year.If Apple struggles to reach her highs,the whole market struggles.Intrexon is a synthetic biology company.It's going to rewrite DNA,with applications for health care,energy and the environment making it a consumer company.
The S&P Homebuilders etf is a top ten position,along with Intrexon,Mr.Miller revealed.*
Halliburton Oil is cutting 8% of its workforce-not surprising since prices are still below the level needed to sustain the industry,according to energy analyst Pavel Molchanov of Raymond James Financial.Fifty or fifty-five dollar oil doesn't cut it medium-term.If oil stays in the fifties,global supply will decline in 2016,being self-correcting.Oil supply is stabilising by the end of this year,as supply will be flat or down slightly.*
Amazon(AMZN),Apple Computer(APPL),Intrexon(XON),SPDR S&P Homebuilders ETF(XHB),Halliburton Oil Company(HAL)

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