As I mentioned yesterday in my 2009 Best Stock Picks article , the same fellow bloggers and I have decided to pursue our stock pick competition in 2010. Although I finished 4th with my stock picks last year, I am willing to take more risk this time around and aim for the top 2! Nonetheless, I was very satisfied with my 2009 stock picks since I finished with a considerable return of 44% even with a defensive stock (JNJ) on hand. I do think that 2010 will be a great year for the stock market since there is a lot of room for growth and there is still a lot of hesitation from investors as well.
2010 Best Stock Picks Contest
The rule of our contest is fairly simple: each Blogger will pick 4 stocks they think they will overperform through 2010. We can pick any stock, ETF, etc in the Canadian or American Stock Markets. In order to make it fair, we also include the dividend yield of our stock picks (because it is part of the investor’s yield anyways). This is a friendly competition, so you won’t see any stock picking recommendations here. You are more than welcome to comment and add your analysis of those stocks as we probably picked them for some reason 😉
So here are my choices for the 2010 best stock picks contest:
This is a half rational, half emotional stock pick as I really like my Blackberry 😉 Nonetheless, I think that RIM stock has been unjustifiably pummelled by financial analysts since the company has announced lower results than expected. Financial analysts are also afraid of Apple’s attack on RIM’s market with the iPhone. I would say that the Blackberry and the iPhone are 2 really cool intelligent phones but they are nowhere close to be comparable competition. They actually don’t serve the same purpose! In addition to that, the recent strong earnings and the agreement to enter China will soon affect the investors decisions and restore their trust in this stock. I think we should get pretty good 2010 results for RIM!
Another of my investing ideas for 2010 is to go with Canadian insurance companies. Why? Simply because they took a hard hit in 2008 (as Canadian Banks did) but they didn’t come back as strong as Canadian Banks. I think that Manulife had its share of problems with their involvement in the US. However, if they are able to boune back with strong numbers in 2010, it won’t take long for them to gain investors’ trust again. Plus, its dividend (almost 3%) makes it a great investment idea for your portfolio in 2010.
I am leaning towards financials again for my 3rd best stock pick for 2010. If the economy starts picking up in Stateside (which will happen eventually), Goldman Sachs will definitely be poised to benefit from the economic revival. Financials that survived the credit crunch should be in a good position for 2010. The idea behind this investment is based on planning on an economic rebound in the States. I hope I am right on this one… if not, this pick could be the worst one of my portfolio in 2010 😉
My last investment idea for 2010 is to invest in emerging markets. Nothing really innovative here but I am not picking stocks to be creative, I am picking stocks that I think will be the best performing ones in 2010 ;-). Since US consumers may still have a hard time in 2010, I preferred to play safe and look towards countries that enjoyed great economic growth in 2009.
So here are the other participants and their investment ideas for 2010:
|Blog||Best Stock Picks for 2010||Ytd|
|Intelligent Speculator ||UNG|
|Wild Investor ||BAC|
|The Financial Blogger ||RIM|
|Four Pillars ||DZZ|
|Where Does All My Money Go ||FUN|
|Dividend Growth Investor ||O|
|Million Dollar Journey ||HE.TO|
|My Trader's Journal ||UUP|
*Disclaimer: this is a friendly competition among bloggers. There are no recommendations done in those posts. One must do his own due diligence before trading on the stock markets.