July 9, 2023

Image: Since the February 2022 edition of the Exclusive publication, the capital appreciation ideas have done quite well, generating a streak of 17 ideas working out in a row. Though we haven't yet closed many of these ideas yet (locking them in as "winners"), it's great to have generated such an impressive streak, and we wanted you to know about it. If you have any questions about your membership status to the Exclusive publication, please let us know. Performance in the Exclusive publication is hypothetical. No trading is taking place. Past results are not a guarantee of future performance.

Dear reader:

The Dividend Growth Newsletter portfolio and Best Ideas Newsletter portfolio did quite well in a very challenging 2022 thanks to their outsized energy exposure at that time, beating both the market return that year as well as that of the more conservative 60/40 stock/bond portfolio, which counterintuitively is supposed to do better in down-markets than equity-oriented portfolios but just didn't happen (as we had expected). We warned investors of the breakdown in diversification benefits of stocks and bonds in the second edition of our book Value Trap, released mid-2020. We hope you've studied that edition of the text.

Then in 2023, our favorite stylistic area of 'large cap growth' came roaring back in a huge way, with 'large cap growth' equities trouncing not only the market so far this year but also the areas of 'dividend growth' and 'small cap value' -- see image below. We continue to like entities such as Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOGL), which have been leading the market higher this year. Had one not been exposed to the largest, big-cap tech companies in 2023, one likely missed out on a huge rally that we think will continue. You can find the latest edition of the Best Ideas Newsletter here (pdf), where we recently made a number of big changes to that publication's newsletter portfolio. We continue to be very bullish on the largest growth-oriented companies and believe they will come to dominate this decade, as they did the last one.

Image: So far in 2023, the stylistic area of 'large cap growth' (top) has trounced the market (middle) and other investing strategies, including 'dividend growth' (bottom) and 'small cap value' (second from bottom).

Perhaps the biggest source of "alpha" during the past 12-18 months, however, may have been our capital appreciation ideas within the Exclusive publication. The Exclusive publication is our high-end publication in which we release one income idea, one capital appreciation idea, and one short idea consideration each month. The success rates* of the publication have been absolutely phenomenal since inception, and our team continues to deliver in a big way, across the board, but the latest consecutive idea streak with respect to capital appreciation ideas in the Exclusive is simply a sight to see.

Since the February 2022 edition of the Exclusive publication through today, we've put together a consecutive streak of 17 capital appreciation ideas "working out" in a row that we've subsequently closed as "winners" or that have moved positively in the direction of our thesis, now trading above their highlight price. The July edition of the Exclusive can be downloaded at this link (pdf). The June income idea in the Exclusive, the JPMorgan Equity Premium Income ETF (JEPI), and the July income idea in the Exclusive, the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), are quite interesting income ideas, in our view.

When we released the top 5 ideas for consideration in 2023, included as one of those top 5 was Tesla (TSLA) as one of our favorites, and shares of Tesla have rocketed higher more than 150% so far this year. Our dividend growth ideas have also held up quite nicely as dividend growth was in favor last year during 2022, and we recently added two very high yielders to the simulated Dividend Growth Newsletter portfolio last month, namely the JEPI and Global X SuperDividend U.S. ETF (DIV). You can find the latest edition of the Dividend Growth Newsletter portfolio here (pdf). The Best Ideas Newsletter and its corresponding portfolio and the Dividend Growth Newsletter and its corresponding portfolio are part of the basic Silver membership.

So how about the simulated High Yield Dividend Newsletter portfolio? High yield equities were in relative favor during 2022, and this portfolio held up quite well last year, too. 2023 has been a solid year for ideas within the High Yield Dividend Newsletter portfolio, and we've been very fortunate to benefit from M&A activity, namely with respect to the premium takeout prices offered for Magellan Midstream (MMP) and Life Storage (LSI). Both of these ideas have now been removed and have been replaced by two of our favorite income ideas. The July edition of the High Yield Dividend Newsletter can be downloaded here (pdf). The High Yield Dividend Newsletter ($1,000/year) and Exclusive publication ($1,295/year) are generally a la carte publications to other membership plans.

We hope you see the tremendous value behind the Valuentum publishing suite from best ideas and dividend growth to high yield to one-off ideas in the Exclusive to identifying key long-term risks of quantitative investing (e.g. the value factor, stock/bond correlations) and investing in mortgage REITs (REM) and master limited partnerships (AMLP) and beyond. In this light, the core of our methodology, including the Valuentum Buying Index ratings and Dividend Cushion ratios, become mere icing on the cake to all that we offer within the newsletters and with respect to strategic portfolio construction and option idea generation. Thank you for reading this note and for paying attention to our work. We appreciate it very much, and here's to continued strength in 2023 and beyond!

NOW READ -- ALERT: Big Yield Additions to Dividend Growth Newsletter Portfolio and High Yield Dividend Newsletter Portfolio

NOW READ -- ALERT: Going to “Fully Invested” in the Best Ideas Newsletter Portfolio 

NOW READ -- Expect Huge Equity Returns This Decade, Much More Volatility However

NOW READ -- There Are No Free 'Income' Lunches

Kind regards,

The Valuentum Team


Download the July edition of the Exclusive publication (pdf) >>

Success rates: The percentage of ideas highlighted in the Exclusive that have moved in the direction of our thesis (i.e. up for capital appreciation ideas and down for short idea considerations) through the current price or closed price, with consideration of cash and stock dividends. Success rates do not consider trading costs or tax implications.

Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free.

Brian Nelson owns shares in SPY, SCHG, QQQ, DIA, VOT, BITO, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, VOO, and DIA. Brian Nelson's household owns shares in HON, DIS, HAS, NKE, DIA, and RSP. Some of the other securities written about in this article may be included in Valuentum's simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.

In this note, the newsletters downloadable via links are provided as samples.

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This email, its contents, and the reports or articles (links) or comments referenced or attached in this email are for information purposes only and should not be considered a solicitation to buy or sell any security. Valuentum is not responsible for any errors or omissions or for results obtained from the use of the reports, articles, Best Ideas Newsletter, Dividend Growth Newsletter, ESG Newsletter, Valuentum Exclusive publication, or any other communication and accepts no liability for how readers may choose to utilize the content. Assumptions, opinions, and estimates are based on our judgment as of the date of the reports or articles and are subject to change without notice. For more information about Valuentum and the products and services it offers, please contact us at [email protected]. The Best Ideas Newsletter portfolio, High Yield Dividend Newsletter portfolio, ESG Newsletter portfolio, and Dividend Growth Newsletter portfolio are not real money portfolios. Any performance, including that in the Valuentum Exclusive publication, is hypothetical and does not represent actual trading. Past simulated performance, back-tested or walk-forward or other, is not a guarantee of future results. Valuentum is not a money manager, is not a registered investment advisor, and does not offer brokerage or investment banking services. Valuentum is an investment research publishing company. No warranty or guarantee may be created or extended by sales or promotional materials, whether by email or in any other format. Further, this e-mail and attachments relating thereto, is intended for the abovementioned recipient. If you have received this e-mail in error, kindly notify the sender and delete it immediately as it contains information relating to the official business of Valuentum Securities Inc, which is confidential, legally privileged and proprietary to Valuentum Securities Inc.