Auxan In The News
Fox Business - July 11, 2016, “Why Asia Beckons Investors"
The Street – May 4, 2016, “Why We're Playing Defense"
Fox Business – March 3, 2016, “Why We're Bullish on Muni Bonds"
The Street – December 7, 2015, “Staying Cautious Until Rate Hike Impact is Clear"
Fox Business – November 9, 2015, “Keeping Centered in a Topsy-turvy Market"
Go Banking Rates – October 13, 2015, “5 Stocks to Buy Before Christmas”
Fox Business – October 8, 2015, “We’re Shorting the S&P and Holding Cash”
Springfield Business Journal - Oct 8, 2015, "Great Southern Doubles St. Louis Presence”
Yahoo Finance! – Oct 1, 2015, “10 Investing Tips for the Rest of 2015”
Fox Business – Sept 3, 2015, “Time to Get Defensive on Stocks”
US News & World Report - July 31, 2015, “Hot or Not: The Prospects of 8 High Profile Stocks”
Sectors of the Month – May 2016
“Go Long, but with safety.” That seems to be the theme of the things we’re buying this month, which includes the following funds: USA Minimum Volatility (USMV), EFAE Minimum Volatility (EFAV), Mega Cap Value (MGV), Telecom (IYZ), High-Yield Municipal Bonds (HYD), and Emerging Market Bonds (EMLC).
Minimum Volatility ETFs like USMV and EFAV are designed to be long stocks but to do so in such a way as to maximize stability. These funds accomplish this objective by investing primarily in large cap companies that are in traditionally defensive sectors such as Consumer Staples, Utilities, Precious Metals, Telecom, and Health Care. Both of these ETFs use this same philosophy, the only difference is that USMV holds companies based in the United States whereas EFAV purchases international companies.
Additionally, MGV and IYZ are also defensive equity funds. The Mega Cap Value fund has many of the same holdings as USMV, but is a little more diversified into other sectors. And Telecom has been one of the few bright spots through the recent season of earnings, showing very strong growth over the last year.
Lastly, we’re buying into two aggressive bond sectors: High Yield Municipal Bonds (HYD) and Emerging Market Bonds (EMLC). Both of these pay fairly high yields – 4.57% and 5.38% respectively – but also have government backing, which increases their safety to a degree.
So, why be so defensive? Here are a few of the reasons:
Interested in learning more? Contact Auxan Capital Advisors, LLC to talk to a financial advisor Springfield MO to learn more about retirement planning and wealth management!
The commentary included in this blog is provided for informational purposes only. It does not constitute a recommendation to invest in any specific investment product or service. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.
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About the Author: Derek Schmidly
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