Setting An Investment Strategy For 2013 With These Ideas

Setting An Investment Strategy For 2013 With These Ideas
News from Seeking Alpha:

2012 was another good year for stock markets. The year ended with the Dow Jones rising 6.9%, while the S&P 500 index rose 13%. The technology-heavy Nasdaq index performed even better, rising 16%.

On a $ 100,000 virtual portfolio built on Kapitall, returns greatly underperformed in 2012. The portfolio was structured to be overweight undervalued companies on the verge of turning around. To decrease market risks, holdings across different sectors are made, giving a sector diversification score of 66%.

This portfolio is managed concurrently with real money. The purpose of this approach is to test and track investing ideas before entering real-life trades. In addition, the portfolio may be shared with other investors, which provides an opportunity to validate investment ideas.

For most of the year, the portfolio held mostly cash. The portfolio is currently over 40% in cash:

(click to enlarge)

Since inception, the portfolio returned 33.7%, but still underpe…………… continues on Seeking Alpha

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Stick to time-tested investment strategies in 2013
News from Livemint:

The year 2013, the year that was not to be—if we were to believe our Mayan mates—looks much more promising than the same time last year. A series of concerns including global growth, the euro zone, fiscal imbalance, inflation and resultant high interest rates had dragged expectations early on in 2012. Yet, against most odds, 2012 closed on an optimistic note. Will the New Year ride on tailwinds from late 2012 and build further or will economic headwinds crush any such optimism? 2013 may be quite unique: there will be opportunity in both prominent asset classes—equities and fixed income.

Equities

Equities were robust in 2012, with the Sensex posting 25% returns. Unfortunately though, few foresaw such a rebound. Even though conventional investment wisdom continues to suggest that we buy equities at relatively cheap valuations, our actions much-too-often run counter. This continued to be the case in 2012, where retail investors sold equities when markets spiked up, often to redeem existing holdings that were breaking even.

As we head into 2013, we may still have a window of opportunity to build exposure to Indian equities. Towards the end of 2012, global tail risks and perceived uncertainties began to subside, increasing global investors…………… continues on Livemint

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