I’ve said it before and I’ll say it again, 2013 has been the year of domestic stocks. Small and mid-cap domestic stocks are the hottest places to be in the market this year—for whatever reason.
Why? Sometimes, you just need to shut up and stop asking questions and go where the fish are biting!
This stuff can defy logic, but who cares if you’re filling your sack with profits this year in 2013? Who cares if you’re going against conventional wisdom, computer models, etc.—either way you’re putting fish in your sack!
And they are good tasting fish, too, that are going to come in handy somewhere down the road when you retire or need to live off the income.
Here are my top eight ranked asset classes from amongst the 45 that I track on a daily basis:
Again, 2013 has been all about stocks. It has also been all about domestic stocks. It has also been all about small and mid-cap stocks. I have had no exposure to the bond market, the precious metals market, and or the emerging markets.
This has helped my returns tremendously this year. Being out of the wrong areas of the market is as important as being in the right areas.
For this reason, I am not an asset allocator. I believe in being in the best asset classes now, not the worst ones. This takes some extra work on my part, but it is well worth it.
Let me throw you a
fish stock. A stock like Old Dominion Freight Line (ODFL), another Best Stock Now!
ODFL is a $3.9 billion mid cap headquartered in Thomasville, NC with a better track record than the Carolina Panthers. Sorry Cam Newton.
Driving ODFL’s performance all the while, we have management. How has the management at ODFL done over the years for its
season ticket holders shareholders?
Over the last 10 years, shareholders have received 21% per year returns on their investment in this trucker. Over the last five years, shareholders have received 25% per year while the market has only delivered 7%. Over the last 3 years ODFL has been trucking along at 39% per year. And over the last 12 months, ODFL is up 48% while the market is only up 16%.
ODFL gets a performance grade of A. The jury is still out on the Panthers this year.
Now we move onto valuation because valuation is critical. This is my problem with Tesla (TSLA). Tesla may have performance, but its valuation when compared against Ford, GM, Toyota, Honda, etc…well, it’s rather astronomical! I’ll allow you to do that comparison and ask yourself if you feel comfortable with the valuation of the shares.
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