Preparing Your Portfolio for a Successful 2025
I hope you enjoyed the holiday! Taking a break from the market and spending time with family and friends was refreshing.
As we approach the end of 2024, it’s time for some portfolio reassessment.
The January Effect: A Market Boost
The New Year often brings a positive shift in the stock market, commonly referred to as the “January Effect.” This phenomenon occurs when people invest additional funds in the market, whether from year-end bonuses or New Year’s resolutions.
Additionally, large fund managers usually adjust their portfolios at the beginning of the year to meet performance goals. They frequently invest in top-performing stocks during this rebalancing period.
Interestingly, the January Effect is typically more pronounced among small-cap stocks. However, the extent of this effect can vary from year to year.
Despite the differences, stock prices generally trend upwards in January.
Time to Clean Out Weak Stocks
This highlights the importance of positioning your portfolio to take advantage of potential market gains. My Stock Grader (subscription required) can assist you in this process. It evaluates large amounts of financial data and provides easy-to-understand letter grades.
In today’s Market 360, I will share 10 stocks to consider selling before we enter 2025. Stock Grader has identified these as underperforming. Some may surprise you:
| Symbol | Company Name | Quantitative Grade | Fundamental Grade | Total Grade |
|---|---|---|---|---|
| BA | Boeing Company | F | D | D |
| COP | ConocoPhillips | D | D | D |
| CVS | CVS Health Corporation | F | D | F |
| CVX | Chevron Corporation | D | D | D |
| HMC | Honda Motor Co., Ltd. | F | D | F |
| INTC | Intel Corporation | F | F | F |
| LW | Lamb Weston Holdings, Inc. | F | D | F |
| NUE | Nucor Corporation | F | D | F |
| SBUX | Starbucks Corporation | D | D | D |
| TM | Toyota Motor Corp. | D | D | D |
Focus on Strong Fundamentals
Each company listed has received a “D” or “F” rating. As we move toward the New Year, it’s advisable to remove these stocks from your portfolio. For successful investing in 2025, prioritize companies with strong fundamentals and earnings growth.
I urge you to utilize the remaining trading days of 2024 to ensure that your portfolio is filled with fundamentally sound stocks.
If you are seeking fundamentally superior stocks, consider my Growth Investor service. This service includes two Buy Lists: High-Growth Investments and Elite Dividend Payers, both offering stocks with solid fundamentals.
Reflecting on 2024, my High-Growth Investments list increased by 37%, while my Elite Dividend Payers grew by about 23%. In comparison, the S&P 500 gained 24%, the Dow rose by 14%, and the NASDAQ climbed 30%. Clearly, my Buy List stocks proved to be top performers.
Enhancing Your Investment Strategy
If you want your portfolio to include the best fundamentally sound stocks, consider joining my Growth Investor service today. By doing so, you will gain immediate access to all my Buy List stocks, as well as my monthly issues, weekly updates, special market podcasts, and more.
Click here to sign up for Growth Investor now.
(Already a Growth Investor member? Click here to sign in now.)
Sincerely,
Louis Navellier
Editor, Market 360
P.S. Having spent over four decades in the market, I’ve noted that stocks often follow seasonal patterns throughout the year. Some of these patterns are particularly significant.
This is why I find the latest research from TradeSmith so intriguing.
Their mission focuses on equipping investors with data-driven insights. It began with a challenging request from TradeSmith CEO Keith Kaplan.
“Examine every stock within the Dow, NASDAQ, and S&P 500 to identify the best day to purchase each.”
After analyzing over 2 billion data sets on 5,000 different stocks dating back to 1991, they developed a tool that indicates the optimal day to buy or sell specific stocks.
As the New Year approaches, TradeSmith will host a webinar to discuss this strategy. You can sign up here now.
Additionally, they’ve launched a website offering registrants the ability to analyze their stock tickers for free.
I encourage you to explore this opportunity. The tool reveals consistent historical patterns that can guide your decisions regarding stocks on your watchlist or those you are considering.
Visit here to register for the webinar and access this innovative tool for free.
This is an opportunity you won’t want to miss.
