Investment strategy in American companies in May 2022
The objective is not to beat any index in particular, but to select those securities with high capitalization and liquidity that offer the most probabilities of returning an acceptable return (revaluation + dividends) for the shareholder in the medium term. As far as possible, since it is a 100% permanent variable income selection, the protection of assets is prioritized over other possible objectives. It is important to note that DJI-30 and S&P 500 indices returns are shown for illustrative purposes only.
Top USA Selection is built with a minimum of 10 and a maximum of 20 stocks listed on the NYSE (New York Stock Exchange), preferably included in the S&P 500 or DJI-30 indices, that offer a high probability of meeting the following 2 conditions:
- Long-term sustainable profit growth (EPS) above the market average and/or its own sector.
- Expected return for the shareholder (revaluation + dividends) attractive in relation to the risk assumed.
Changes of the American model portfolios
Changes made this month:
We increased exposure to technology with attractive multiples and reduced weight in energy and defensive companies (food and communications).
Enter: Microsoft, Alphabet/Google, Salesforce, Nvidia, Airbnb, Crowdstrike and Mosaic, a bank (Wells Fargo) and Nike.
Exit: Activision, AT&T, Chevron, Pioneer Resources, Union Pacific, Tyson Foods, Campbell, Wallmart and Verizon.
Selected American Stocks
- Lockheed Martin
- well tower
- Nike
- Procter & Gamble
- Halliburton
- Diamondback Energy
- microsoft
- Salesforce
- ConocoPhillips
- Alphabet/Google
- Nvidia
- fortnite
- Wells Fargo
- CrowdStrike
- airbnb
- Mosaic
- McDonald's
- Palo Alto
- Manzana
- Envista Holdings
See the full report and find out the reasons why it is a good time to buy shares of these American companies, or consult it in the reports section on the analysis page.
Evolution of the Top USA Selection portfolio
After the extraordinary revision due to the deterioration in growth and inflation prospects after the Russian invasion of Ukraine, the Top Selection appreciates +2.3% (vs. +3.2% registered by the S&P 500 vs. +3.2% of the Dow Jones Industrials). In the whole of 2022 (YTD onwards) it accumulates a loss of -7.5%, which exceeds that registered by the main indices in the US.
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The Top companies have solid fundamentals and have high long-term growth potential, but the bias towards growth companies in the portfolio in the first part of the year has taken its toll on the tightening of financial conditions (rate hikes ). However, the recovery of these companies in the last month invites optimism for the coming months.
The values that have had the best behavior in the month have been:
Palo Alto (+11.6%)
Halliburton/energy (+10.9%)
Welltower/infrastructures (10.4%)