Stock Investing: How Should Investers Proceed In 2011
Black Enterprise Magazine September/October 2018 Issue

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One year ago this week, on March 9, 2009, the Standard & Poor’s 500 hit a 12-year low of 672.88 as it reached its lowest point during the most recent economic recession. Since that time, the S&P 500 is up 69%. The Dow Jones Industrial Average and the NASDAQ, of course, witnessed a similarly resilient rebound. Black Enterprise called on a handful of financial experts to find out why the market has bounced back so powerfully, whether the rally can continue, and how investors should proceed in the coming year.

Wayne P. Weddington III, portfolio manager and managing partner at Brunswick Capital Partners. Author of Do-it-Yourself Hedge Funds (Hachette; $24.99).

The reason for the rally:

I think a lot of the market activity in the last 12 months has been speculation. We’ve also had a tremendous collapse in market fundamentals. I am personally one of the people that think it is overshot. There is a lot of uncertainty in the market. We have a lot of exogenous activity.

The word on the street [is] that people have really been trading technicals because the fundamentals haven’t really taken strong direction. [This means people are buying] more in terms of price action. If you are a speculative investor, the market rallies and you want to participate and it becomes a self feeding proposition. No one wants to be [the one who didn’t get in on the market action].

Predictions for the coming year:

The Fed … knows interest rates will increase. They are walking a very delicate line. Rates will continue to inch up slowly as they get evidence that the economy is [improving] I think what they did do was truly avert a [crisis].

Advice to investors:

Buy on a sector basis. Some of them make fundamental sense. Capital goods will continue to perform. Technology will continue to market perform or better because even in difficult economic times people still want their iPods. Consumer noncyclicals will continue to perform. It has been a standout at about 22%. To short the market against it would be a profitable trade.

What are your feelings about rebounding economy? CLICK HERE to take the Black Entrprise poll.

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Marcia Wade Talbert

Marcia is a multimedia content producer focusing on technology at Black Enterprise Magazine. In this capacity she writes and assigns stories to educate readers about social media; digital integration; gadgets, apps, and software for business and professional development; minority tech startups; and careers in STEM (Science, Technology, Engineering, and Mathematics). In 2012, she received two Salute to Excellence Awards from the National Association of Black Journalists and was recognized by Blacks in Technology (BiT) as one of the Top 10 Black achievers in the tech arena for 2011 at SXSW in Austin, Texas. She has spoken about technology on panels for New York Social Media Week, at The 2012 Rainbow/PUSH Wall Street Summit, as well as at Black Enterprise’s Entrepreneurs Conference and Women of Power Summit. In 2011, chose her as one of 28 People of Color Impacting the Social Web, and through crowdsourcing she was listed as one of BlackWeb2.0's/HP's 50 Most Notable African American Tastemakers in Social Media and Technology for 2010. Since taking on the role of Tech editor in September 2010, she has conceived and produced five cover stories on Technology and/or STEM and countless articles, videos, and slideshows online. Before joining as an interactive general assignment reporter in 2008, she freelanced with Black Enterprise beginning in 2003 while working as the technical editor at Prepared Foods magazine. There she further honed her writing skills and became an authority on food ingredients, including ingredients used in food fortification and enrichment. Meanwhile, her freelancing with Black Enterprise and helped her stay current on issues pertaining to the financial and business welfare of African Americans. As a general reporter for Black Enterprise she attended and reported on the Democratic and Republican National Conventions, where she interviewed Valerie Jarrett, senior advisor and assistant to President Barack Obama and U.S. Attorney General Eric Holder. Marcia has a Bachelor of Science degree in Agriculture with an emphasis in food science from the University of Minnesota, and a Master of Science degree in journalism from Roosevelt University in Chicago. En route to her secondary degree, she served as the editor-in-chief of the Roosevelt University Torch, a weekly, student-run newspaper. An avid photographer and videographer, Marcia is one of several employees at BLACK ENTERPRISE who interned for the publishing company as a college student. She lives in New Jersey with her husband, a food scientist; her seventeen-month-old daughter; and “The Cat”, but still considers Chicago home.