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Equities Will Outperform Precious Metals
By Daniela Cambone and Sarah Benali of Kitco NewsFriday December 26, 2014 11:20 AM
(Kitco News) - Last year, we gave the experts $10,000 to play with but this year, we bumped it to $100,000. Of course, we also asked them which investments they absolutely would avoid in 2015 and their New Year’s resolution.
This week we feature Puru Saxena’s strategy, the portfolio manager for Hong Kong-based Puru Saxena Wealth Management. We put him up to the test and gave him $100,000 to allocate in 2015.
Part I Peter Schiff tells Kitco News where he will be putting his money in 2015.
Part II James Rickards tells Kitco News how he would invest $100,000.
Expert: Puru Saxena
Claim to Fame: Founder and CEO, Puru Saxena Wealth Management
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| Puru Saxena |
On How He Would Invest $100,000 in 2015
- 50% in U.S. equities
The largest chuck Saxena allocated was in U.S. equities since he is betting on a revival of consumption in the U.S.
He lists airlines, apparel and footwear, asset managers, auto parts and dealers, biotechnology, credit card companies, housing-related stocks, restaurants and discount retailers as the strong industry groups which are likely to perform well next year. “These are areas benefiting from the end of consumer deleveraging and the rise in U.S. consumption,” Saxena said.
He named Express Scripts (NASDAQ:ESRX), Illumina (NASDAQ:ILMN), Mastercard (NYSE:MA) and Starbucks (NASDAQ: SBUX) as his top picks.
- 15% in Chinese A-Shares (which he notes have recently broken out of a 3-yr trading range)
- 15% in European equities
- 10% in Indian equities
- 10% Japanese equities
On What He Would Avoid in 2015
“I would stay away from commodities, precious metals and high yield bond funds,” Saxena noted.
On His New Year’s Strategy
Saxena bluntly and smilingly says, “None.” “Stay disciplined. Follow your trading system; let the winners run and cut the losers as soon as possible.”
Saxena on The Best Investment Advice He Ever Received
“Don’t predict the market or listen to the experts. Just follow the price trend, diversify, keep your position size small and cut your losses as soon as possible. If you don’t respect risk, eventually they will carry you out,” Saxena summed up.
Saxena’s Financial Mentor?
I have learned immensenly about risk management from Larry Hite, Van Tharp and my friend Larry Tentarelli who is an exceptional trader. In terms of stock selection and trading, I have benefited from Mark Minervini and William O’ Neil.
These days Saxena just follows the price. “The price charts tell me more than all the gurus put together.”
By Daniela Cambone and Sarah Benali of Kitco News dcambone@kitco.com and sbenali@kitco.com
Follow Daniela Cambone on Twitter @DanielaCambone and Sarah Benali @SdBenali
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