Monday, December 15, 2014

The 2014 Global Rejects for 2015

Based on the positive feedback from the imaginary "2013 Global Rejects Portfolio: Only For People Who Hate Money" (posted here), I have decided to do a quick imaginary "2014 Global Rejects Portfolio: Money To Burn"

There is a challenge however: going solely off YTD and loss from 52-week high would present a gigantic bet on commodities/USD weakness, be it producers or whole countries. The 2013 rejects were a more diversified bunch. So I am still sticking with Rejects (down 5% to 52% down from the 52-week high as of Friday Dec 12 2014) but not everything is from the very bottom. I am also going with 5% picks only.

Here it is by broad category:

Commodity-driven industry sector ETFs (7): FCG nat gas equities, OIH oil services, GDX gold miners, SLX steel producers, SIL silver miners, KOL coal miners, AMLP MLPs

Weak US sector ETFs (3): SOCL social media, ITB homebuilders, KBE regional banks

International ETFs (3): ELD EM local debt, EMCB EM corporate debt, IPS international consumer staples

US fixed income ETF (1): JNK high yield

Country ETFs (6): RXSJ Russia small caps, GREK Greece, BRF Brazil small caps, EWI Italy, EWP Spain, ARGT Argentina

(The imaginary nemesis, call it the "2014 Global All Stars: The Mo Bro" could be something like 10% each: TLT LT Treasury, PFF US Preferreds, XLU US Utilities, VNQ US REITs, LQD US IG Corporates, XLY US Discretionary, IBB Biotechs, EPHE Philippines, ENZL New Zealand, EPI India)

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