Ron Baron: Long-Term Investments Are the Way to Go
Currently, Ron Baron has ~$300 million in investments and owns ~1.5 million shares in Tesla bought over three years at ~$208 per share.
Emerging markets have done well this year and should continue to attract investor interest around the globe. Latin America is leading year-to-date.
The Barbell strategy involves putting half your portfolio in defensive, low-beta sectors or assets and the other half in aggressive, high-beta sectors or assets.
Investors are stepping back into emerging market bonds after removing billions of dollars from emerging markets in 2016.
Strong investor interest in emerging market debt has continued despite adverse political and economic issues in some countries.
According to a recent BofA Merrill Lynch Global Investment strategy report, emerging markets are expected to grow at a modest pace of 4.7% in 2017.
Negative bond yields in Japan and low Fed funds rates in the United States and the Eurozone were one reason emerging market bonds performed well in 2016.
Short interest in KMI is on the lower side of its average of ~2.5% over the past five years.
On January 17, 2017, Huntsman (HUN) announced the name of its proposed spin-off for its pigments and additives business. It will be called Venator Materials Corporation.
On January 17, 2017, RPM International (RPM) announced that it has acquired Prime Resins. The acquisition will be integrated into RPM’s USL Group.
On January 17, 2017, International Flavors & Fragrances (IFF) announced that it has completed the acquisition of Fragrance Resources. IFF stock rose 1.3% for the week ended January 20, 2017.
Many investors look to the stock performance in January to predict results for the whole year.
Opportunistic tax-loss selling, $46 billion in maturities and coupon payments, and constrained supplies in municipal bonds all point to one thing: the January Effect may be a “slam dunk.”
Treasuries recorded a spike in their yields last year due to the sell-off after Donald Trump’s victory.
The January Effect is a rise in asset prices often (but not always) observed throughout the month of January. There are a number of theories as to why this happens.
PSXP’s current short interest is on the high side compared to its average of ~1% since its inception in 2013.
As of January 11, 2017, DuPont traded at a one-year forward PE multiple of 20.00x compared to its peers Dow Chemical (DOW) and LyondellBasell (LYB).
Analysts’ consensus indicates a 12-month target price for DuPont at $78.10—a return potential of 5.5% from its closing price of $74.03 on January 11.
DuPont (DD) offers defined benefit plans to 80% of its employees across the world along with other long-term employee benefits.
DuPont’s (DD) stock price remained flat with a marginal gain of 0.6% from December 1, 2016, to January 11, 2017. DuPont has been trading sideways.