Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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Overview:
Started in 1991, the S&P MidCap 400 Index tracks a diverse basket of
medium-sized U.S. firms. A mid-cap stock is broadly defined as a company with a
market capitalization ranging from about $2 billion to $10 billion. Although the
S&P 400 is not as popular as some of the larger indices (such as the S&P
500), it is an important benchmark for many fund managers who invest in this
segment. This index contains solid firms with good track records that are simply
not large enough to be included in the much larger S&P 500 index.
Composition:
As the name suggests, this index consists of 400 equities. The stocks are chosen
based on market capitalization, liquidity and industry representation. The index
contains firms that are situated in size between the S&P 500 Index and the
S&P SmallCap 600 Index. It is a market-weighted index, meaning that larger
firms have more influence on the index's performance than smaller ones. The
average size of a firm in this index is between $1-4 billion. When taken
together, the 400 components of the S&P MidCap 400 Index represent about 7%
of the total market value of U.S. equities. The top 10 holdings are quite
balanced and represent about 8% of the fund. This makes the index much less
concentrated than its large-cap index peers, where top holdings can often
represent 30-40% of an entire index's value.
The table below lists the current top ten holdings in the
S&P MidCap 400 Index, as well as the top ten sectors represented in the
index (data as of July 2004):
| Company |
Symbol |
%
of Index |
| Gilead Sciences |
GILD |
1.3% |
| Washington Post |
WPO |
0.9% |
| NY Comm. Bancorp |
NYB |
0.8% |
| Lennar |
LEN |
0.8% |
| Coach |
COH |
0.8% |
| Valero Energy |
VLO |
0.8% |
| DR Horton |
DHI |
0.8% |
| Tyson Foods |
TSN |
0.7% |
| L3 Communications |
LLL |
0.7% |
| XTO Energy |
XTO |
0.6% |
|
| Sector |
% of Index
|
| Financial Services |
17.9% |
| Consumer Services |
13.7% |
| Healthcare |
11.7% |
| Business Services |
10.0% |
| Hardware |
9.3% |
| Energy |
8.6% |
| Consumer Goods |
8.1% |
| Industrial Materials |
8.0% |
| Utilities |
6.1% |
| Media |
3.1% |
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Positives:
The S&P MidCap 400 Index has historically outperformed its larger sibling,
the widely quoted S&P 500. This is due to the fact that smaller firms
generally outperform their larger rivals over time. Why is this the case? Well,
companies often find it harder and harder to boost revenues and earnings at a
fast clip as they grow and mature. Because of this, larger firms tend to grow at
a slower pace than their smaller rivals.
Drawbacks:
Although it has grown in popularity in recent years, the S&P 400 remains
largely overshadowed by the S&P 500. Meanwhile, investors who wish to invest
in smaller firms usually choose the Russell 2000 or the S&P 600. The S&P
MidCap 400 Index is stuck in the middle of the market and is primarily used by
fund managers. Because of this lack of visibility, the index is not as liquid as
its large-cap peers.
How can I trade/invest in this index?
A variety of different mutual funds and ETFs track the S&P MidCap 400 Index.
Our favorite way to trade this index is through an investment in the S&P
MidCap 400 SPDR (symbol MDY). This ETF closely tracks the index's returns, is
relatively liquid, and charges an extremely low 0.25% expense ratio. Thanks to
its status as an ETF, investors can buy or sell the S&P MidCap 400 SPDR
anytime during normal trading hours, just like a common stock.
Additional Information:
S&P MidCap 400 Index information from Standard & Poor's
S&P MidCap 400 SPDR (MDY)
iShares S&P MidCap 400 Index Fund (IJH)
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Who Cares What the Market is Doing When You're Pulling in $28,900 a
Year in Dividends?
With the safe, growing, high-yield picks that Editor Carla Pasternak
recommends every month you don't have to worry whether or not the
market has bottomed. You can sit back and collect annual dividend
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You can't go wrong looking into Carla's recommendations. A year from
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you'll be glad you did. Take the first step and,
read this report now.
Seven "Yield Doubler" Stocks That Are Clobbering The Dow
Just 12 trading days before the market hit its 6,500-point low this
year, the "Yield Doublers" portfolio was born. That was
almost 4 months
ago. The Dow has rebounded +12% since then -- but our seven "Yield
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Go here to see why you should add these "Yield Doublers" to your
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Putting $50,000 on the Line in Our NEW Stock of the Month Portfolio
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Two
Infrastructure Stocks That Are Profiting From Massive Government
Spending
Since the stimulus package was signed into law on
February 17th, these two infrastructure picks have moved up quickly.
One's a worldwide construction company that's already gained +32% to
date. The other makes critical copper, aluminum and fiber optic
cables... and shot up +41% in a matter of just weeks. Both are headed
higher. You’ll find their names in this special report. |
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3
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Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
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