Today's market performance along with the rally the market exhibited during the last 90 minutes of the day on Friday should remind everyone as to what I talked about mid day on Friday: "have an investing plan and a solid source for investment ideas". One of the key drivers to success with your portfolio is to be IN the market during all periods and that means you have to ultimately deal with the down days, weeks and sometimes even months. But that's FINE because if your plan includes dedicated weekly or monthly purchases of the stock market, then you'll be lowering the cost basis of your portfolio as it reacts to the invariable market down periods. Remember that missing just the ten best days of the market performance over the last 40 years (data thru 2015), your annualized returns are over a third less, 9.8% vs 6.0%, than had you stayed in the market without interruption. Let me be clear, that's the 10 best days over a 40 year period, NOT the best 10 days of every year over the last 40!
This is where Zack's provides the everyday investor with the tools to build a long lasting, stable portfolio that can withstand the down periods that every major market cycle goes through. We will use Zack's Rank's #1 and #2 stocks to look at a few stocks today that make sense to start a portfolio or add to existing positions. The best part of this is that while everyone around you will be talking about market news items that they know very little about: leveraged short volatility ETN's, wage gain inflation, risk parity program selling, etc., you'll be comforted in knowing that your portfolio is comprised of highly ranked Zack's stocks! Here we go.
((EV - Free Report) $54: Eaton Vance is a financial services company primarily involved in Investment Management. Currently a Zack's #1 rank stock, Eaton Vance's dividend yields a healthy 2.33%, estimate revisions of about 10% higher for the current FY, trades at a slight discount to the the market and has seen a slight uptick in margins. Eaton Vance manages over $400b with offices spread throughout North America, Asia, Europe and Africa. The stock is off about 10% from its recent highs but with a solid tape and a longer term take on the name, investors should be rewarded owning EV.