Ultimate Stock-Pickers’ Top 10 High-Conviction and New-Money Purchases
Top managers were finding new places to put money to work and adding to existing high-conviction ideas in the first quarter.
By Greggory Warren, CFA | Senior Stock Analyst
Despite reaching an all-time high midway through the first quarter of 2015, the U.S. equity markets (as represented by the S&P 500 TR index) rose less than 1% during the period. Stocks were fairly volatile at the beginning of the quarter, affected by declining oil prices, which hit a multiyear low during the period (having fallen more than 50% from peak price levels just six months prior). The prospect of lower oil and gas revenue, as well as reduced capital expenditures by energy companies, weighed heavily on not only energy stocks, but the other industrial companies that serve them. Solid earnings results across most other sectors combined with expectations of continued accommodation on the part of the Federal Reserve, more positive views on Europe, and a stabilization in oil prices to lift markets higher midway through the quarter. However, concerns over the strong U.S. dollar and slowing economic growth kept them from gaining much more during the period.
The Morningstar Ultimate Stock-Pickers Team does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.