What would a Beagle invest in on the US Market?

[Basil]

Its Friday afternoon and time for a lighthearted look at what one might invest in if one took a "Dogged" approach to US investing.

Firstly - BARK because Bealge's love to do exactly that and Bark is a a company in the US focused on all things dog's.
Next up, because we want to not be obsessed with all things Dog, what self respecting dog wouldn't want to chase some CAT shares.  Of course we know CAT has nothing to do with the pet industry but just the name gets it in there and provides useful diversification.
Next up we know we need some tech company investment to construct a diversified portfolio and data storage companies are all the rage so that's got to be Datadog DDOG  say no more a compulsory inclusion in any smart dog's portfolio.
Chewy CHWY is a must have inclusion with its focus on all things pet food, what self-respecting hound is not obsessed with chewing on things ?
Bone Biologie's BBLG makes it in there just on the name and provides even more diversification and finally a few cents in CENT Central Garden and pet food company rounds out a howling good portfolio.

See, this portfolio construction thing is child's (puppies ?) play eh 

I am tempted to throw $10K at each on the blind just for fun and see what happens...Can't do much worse than the NZX lol

[Shareguy]

Some interesting names there. Especially Cat, what they charge for engine servicing is beyond belief. Lot of money in Pet food, so not surprised at there inclusion.

Will watch with interest.

[BlackPeter]

Not sure I would trust the investment skills of any dog ... the ones I know of are ways too much focussed on the now instead of trying to plan for the future ;

Anyway - reformulating your question a bit (and ignoring the doggy part) it would read "Why would a beagle invest into the US market"?

I think this might give an interesting discussion ... and I do see at the moment a lot of potential headwinds for US investments:

- US well might end up in a couple of weeks (or probably months until the new house comes together) with a government unable to agree on anything. Bad for the economy.

- USD currently very high - bad if you invest on the US market buying with foreign currencies.

- The outcome of the (so far) economic war between China and the US is currently open. While I hope like hell that the US will prevail, we can't be sure. A win for China would crush US share markets.

... but hey, I don't like US investments anyway, and some of my reasons are personal and others might be based on sentiment ... so - what are good reasons for you to invest now in the US?

[Basil]

I hate the FIF regime with a vengeance, paying tax on 5% deemed dividends on the value of your shares is egregiously wrong and the 50K limit before this kicks in hasn't been changed since this form of wealth tax was initiated a very, very long time ago.  Even splitting investments with Mrs B that's a limit of $100K before the FIF regime kicks in which is chump change for most professional investors.

There are some very good value opportunities over there with metrics that really make me wonder if my obsessive approach towards this unreasonable tax isn't costing me money ?

Cat's a good example with tremendous pricing power as Shareguy is finding out, and widespread interests in a wide cross section of plant and equipment across so many industries and countries.  Currently experiencing exceptional demand by oil explorers and drillers.  Forward PE in the mid teens from memory.

Some other industrials are interesting.  Ford and GM on cheap PE's in the mid single digit range with exciting programs for new EV's models coming into production very soon.

Some of the beaten down value home builders are on low single digit PE's.  Value investors paradise with dirt cheap value stocks and some very cheap growth stocks.  Many solid companies are down 40-50% are are very cheap compared to the sometimes-crazy metrics accorded to N.Z. stocks.

In my somewhat flippant first post in this thread, I mentioned a number of stocks in sectors we simply don't have access too in our tiny market that gets smaller every year so that's another reason to migrate some of my funds over there.

Currency is definitely a concern, but there's hedging available if you want to reduce the risk of an appreciating $Kiwi.  I wouldn't bother for as long as we have Cindy and her bunch of radical co-governance socialists in power.

Every time I look at a fund like Fisher's Marlin fund I end up thinking there's no way I would buy that company in the fund or that one or the other one.  Maybe its time to suck up the FIF tax impost and start my own stock picking over there...

[Crackity]

There's definitely some great value in beaten down OZ stocks in the micro to mid cap range as well beagle - generally no FIF unless you are buying a fund and you can check on the IRD website prepurchase. Currency cross rate has been better but the USD rate doesn't inspire me to move funds from NZD to USD at present  My bug bear is no imp credits and useless franking credits....

[BlackPeter]

I hate the FIF regime with a vengeance, paying tax on 5% deemed dividends on the value of your shares is egregiously wrong and the 50K limit before this kicks in hasn't been changed since this form of wealth tax was initiated a very, very long time ago.  Even splitting investments with Mrs B that's a limit of $100K before the FIF regime kicks in which is chump change for most professional investors.

There are some very good value opportunities over there with metrics that really make me wonder if my obsessive approach towards this unreasonable tax isn't costing me money ?

Cat's a good example with tremendous pricing power as Shareguy is finding out, and widespread interests in a wide cross section of plant and equipment across so many industries and countries.  Currently experiencing exceptional demand by oil explorers and drillers.  Forward PE in the mid teens from memory.

Some other industrials are interesting.  Ford and GM on cheap PE's in the mid single digit range with exciting programs for new EV's models coming into production very soon.

Some of the beaten down value home builders are on low single digit PE's.  Value investors paradise with dirt cheap value stocks and some very cheap growth stocks.  Many solid companies are down 40-50% are are very cheap compared to the sometimes-crazy metrics accorded to N.Z. stocks.

In my somewhat flippant first post in this thread, I mentioned a number of stocks in sectors we simply don't have access too in our tiny market that gets smaller every year so that's another reason to migrate some of my funds over there.

Currency is definitely a concern, but there's hedging available if you want to reduce the risk of an appreciating $Kiwi.  I wouldn't bother for as long as we have Cindy and her bunch of radical co-governance socialists in power.

Every time I look at a fund like Fisher's Marlin fund I end up thinking there's no way I would buy that company in the fund or that one or the other one.  Maybe its time to suck up the FIF tax impost and start my own stock picking over there...

Fair enough - and I do agree, there are certainly good reasons to invest parts of one's funds overseas, and yes- FIF regime as well as the treatment of any overseas tax credits here in NZ suck (to use a PC term).

Just wondering, though - why did you pick the US? Overseas is much larger, and I do see some specific risks for the US coming up:

- US will run into a period of increased political tensions - and while nobody hopes for that - civil unrests (some talk about a civil war) and a lame duck government might be in the cards if the GoP wins just some seats more (which polls say is likely).

- The fight between the giants China and US just started ... and nobody really can predict how it will end However, no doubt it will be painful for both.

Question: Did you consider European shares as well? The big car makers all have currently single digit PE's (and personally I would prefer to own Mercedes (forw PE of 5.2), BMW (forw PE of 4.4) or Volkswagen (forward PE of 3.7!) shares vs Ford or GM shares:) ... and plenty of other cheap European shares around as well: Daimler Trucks (forward PE of 5.2 - and their equipment is used by many armies), Bayer (chemicals, fertilizer and medical stuff including ingredients for Covid vaccines - forward PE of 9.9), Heidelberg Cement (Think 5 times FBU with a forward PE of 6.1) BASF (forward PE of 8.8 ) ... and on we could go.

Maybe worthwhile to consider some more diversification ... uncertain times ahead and stocks are cheap as chips.

[Basil]

Thanks for your thoughts BP. Europe already in recession by some accounts but yes, on a forward view now is probably a good time to be considering some of the companies you mentioned.    The metrics on those vehicle manufacturers seem quite remarkable.  Priced like they're going out of business, which when you take into account their long history, seems incredibly unlikely.

[notmaurice]

 A very small investor thru sharesies and over the last 6 months i have invested in ARR,NYMT,OP,PLTR & SFL.
share price has declined but 4/5 are paying divys.

[KW]

There are some very good value opportunities over there with metrics that really make me wonder if my obsessive approach towards this unreasonable tax isn't costing me money ?

Maybe its time to suck up the FIF tax impost and start my own stock picking over there...

I am having the exact same thoughts.  Again, like in real estate investing, this equation gets flipped on its head in a time of high interest rates.  5% deemed income suddenly starts to look cheap 

As a momentum investor there is far more opportunity to find high growth stocks in the US, than in Australia (and I dont even bother with NZ) and the stock price movements are far greater.  

So once this bear market drifts into hibernation, I'll be looking to the US for some good break out stocks.  

[Basil]

I am having the exact same thoughts.  Again, like in real estate investing, this equation gets flipped on its head in a time of high interest rates.  5% deemed income suddenly starts to look cheap 

As a momentum investor there is far more opportunity to find high growth stocks in the US, than in Australia (and I dont even bother with NZ) and the stock price movements are far greater. 

So once this bear market drifts into hibernation, I'll be looking to the US for some good break out stocks. 

Good for you...I will be very interested in what you're getting into.  If you can find good value stocks where the FA is compelling, and they start to break out...please keep me in the loop.
I think the energy sector could still have a long way to run in 2023. When China demand starts recovering this very tight oil market could experience an outsized upwards movement.  This is also an area I feel it is prudent I hedge for the foreseeable future.

[Stoploss]

I am having the exact same thoughts.  Again, like in real estate investing, this equation gets flipped on its head in a time of high interest rates.  5% deemed income suddenly starts to look cheap 

As a momentum investor there is far more opportunity to find high growth stocks in the US, than in Australia (and I dont even bother with NZ) and the stock price movements are far greater. 

So once this bear market drifts into hibernation, I'll be looking to the US for some good break out stocks. 

I ran a scan here are some stock codes to have a look at might fit some of your criteria.
CPRX,STRL,FN,LYTS,HLX,OIS,BTB,IQ

[Waltzing]

BP why are you keen on MERC....

we have an old Merc used solely as a surf car ... not having Cars in NZ except for local transport use not social use.

Its the worst model produced by Merc and the dealer is incapcable of servicing it as the computers cant ever figure out what its OP codes mean.
 
its serviced by a shop in auckland that specialises in customising euro cars.

Merc just seems to make terrible handling heavy cars just like its orginal designs.

The car is named after a girl who was austrain... The girls was probable more graceful than the cars...

Worst car ever owned but much loved anyway... small 2 door hatch full of surf boards and sand...

 

[Waltzing]

Lets face it with the FED going to hold 5% for the next 12 months or more should we have all sold the market last March?

probably...

a market gong no where for 24 months since last march or more....

Sell in MAY is now the call but if your portfolios are already down you cant...

Its HOLD and WAIT and work on your back office AGAIN... its the a rerun of HOLD sand pray?

if you are a VET of markets its WORLD as USUAL but if your SHAZ its a whole NEW WORLD...

and it could sink some platforms as the weak players come to a cash crunch...

If you hold SHARES in platforms  that are in TRUST it could be a safe thing to move them out and close the accounts.

[notmaurice]

A very small investor thru sharesies and over the last 6 months i have invested in ARR,NYMT,OP,PLTR & SFL.
share price has declined but 4/5 are paying divys.

PLTR up 21% on Yesterdays results.Citibank poopooing the result but Keith Fitz enthusiastic.

[notmaurice]

Keith Fitz very bullish on PLTR this morning.He says do what Wall Street does  not what they say.