Tax season just ended, leaving many investors with a pocketful of cash to spend. My investors also have cash to spend, as I sold stocks high and built the cash position in client accounts to between 15% and 20%. With this being one of the longest Bull Markets in history, I have to assume we will get a correction and that will give me an opportunity to pick up some great stocks at lower prices. Through the first qtr, my Growth Portfolio was up 2% in 2015, the S&P was flat.
As it sits now, lots of good stocks are overvalued and I am hesitant to buy a stock at a price I think it will be at two years from now.
The stocks currently in the Growth Portfolio have average upsides to their 2015 Fair Value of 19%, the top stocks I don’t own which are on my radar are overvalued by 13%. 2016 is really where the opportunity lies for us, as the Growth Portfolio has 49% upside, compared to just 6% for the next-best set of stocks.
