TheStreet's Stephanie Link Looks To International Equities in 2014

By Daniela Cambone and Sarah Benali of Kitco News
Friday December 13, 2013 11:30 AM

Editor's Note: Introducing Kitco News' Invest Like The Experts Series, a weekly feature that will showcase investment gurus' top investment picks for the coming year. Each expert was asked how they would invest $10,000 in 2014 and what they would absolutely avoid. Click here for more experts!

Stephanie Link
 

Expert: Stephanie Link

Claim to Fame: Director of Research & Vice President of Strategy for TheStreet, CNBC contributor & appears regularly on Fast Money: Halftime Report, Closing Bell, Squawk Box and The Kudlow Report.

What type of investor do you consider yourself?  

“I am a fundamentalist – I analyze companies and assets and I also look at the macro top-down strategy…

 I think that my investment style is really more core - which is a combination of value and growth.  I’m looking for stocks that are kind of growing but that are trading at a reasonable valuation. So I’m not a momentum investor. I’m not a deep-value investor. But I try and find something in the middle.”

Risk Averse or Risk Taking?

“Interesting question and it’s a tough answer. I do take some risk, we do have some high beta, higher volatility names in the portfolio but I also like to offset it with some lower volatility stocks. So I would say I’m a long-term investor, I trade around core positions and I have kind of a blend of some really high-fliers and some names that are less aggressive with less beta.”

How would you invest $10,000 in 2014?

50% in US Equities

50% Internationally (Europe, China, Japan)

“I would slowly throughout 2014 take profits in the US and put it internationally, because I think the valuations are much cheaper internationally than they are here in the United States.”

Where would you avoid putting your money in 2014?

“[I]f you have an allocation and you are going to have some stocks and some bonds, I would absolutely reduce fixed income, because I do think interest rates are going to move higher next year, and I think you don’t want to own long-dated maturities when rates are going higher.”

“In addition to stocks, I would reduce bond-like investments. What does that mean? I would reduce positions in utilities, in consumer staples, and in telecom. Those are areas that are very interest rate sensitive. And as interest rates move higher they compete with the dividends in these sectors.”

To Tweet or Not to Tweet?

“I am not a Twitter fan – I think the valuation is way too expensive - it is trading at 22 times price to revenues [as of press time] and that is just one metric. To me, the strategy of growth and of advertising growth of monetization is unproven. If I had to choose between Twitter and Facebook, I much prefer Facebook. Even though the stock has had a nice run year-to-date, I think they have gun to show improvement in their mobile monetization.”
 
The Metals

“[Gold and silver] are long-term investments – not a trade by any means. I don’t think you have inflation right now around the world but I do think all this global monetary policy being put in place around the world will lead to more inflation – not until 2015-2016 – but you want to have exposure in gold in anticipation of that.”

What is the best investment advice you ever received?

“The best advice I ever got was from my father, who was a broker - he basically said dollar cost averaging. 

Every month put a little money away in whatever it is you are comfortable owning, I started off with the Vanguard S&P 500 – and little bit every month eventually leads to a little bit more.”

Who do you follow for investment advice?

“One of the best investors that I always followed is Leon Cooperman from Omega Advisors.”

By Daniela Cambone dcambone@kitco.com and Sarah Benali sbenali@kitco.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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