ETF plays I'm working. Global telcom, global health, financial services, insurance. All i shares... They're probably the 4 cheapest places in the market, low risk, very good upside. I love creating a core portfolio, surrounded by things like etf specialties, and indy stocks. I do some hardcore research about 2-3 times per year.

I got into precious metals in May. Silver is up 60-70% since then, gold only 20%. I have an exit strategy, but it is top secret...

I think energy has seen its best days, think its pretty much over. Energy is an early inflation mover, and IMPO, it's done....

In my recent stock research, I found surprisingly good valuations in defense and managed care. UNH, HUM, and AET are trading seriously cheap on valuations! Also GD, BA, RTN TXTand LMT are core names of defense, trading cheap. The negatives are more than reflected in both areas, leaving some really nice long term upside.

I specialize in large cap out of favor, big and cheap. But, I'm actually much more enthusiastic these days using small cap. In the 70s, small caps really started to outperform, and I think the same element is in play these days. I've got 20% allocation to small cap, 20% to mids, 60% to large cap.

That's not even funny BFP. You shouldn't mess with Anna like that haha. On second thought, yeah go ahead. Good call on the energy play!

So what you're saying is to drop everything into annuities and use the money to purchase a Bell Helicopter?

I was thrown back a bit by your sectors at first, BFP until it started to read like you are a contrarian investor. I got a call last week from one of our largest and more tenured producers telling me his team was moving more assets into Smallcap and plopping commodity ETFs around his core.

Yes, I'm what I'd call an "opportunistic contrarian". I look for really big companies, that are unusually cheap, then I create a portfolio of about 12 stocks as a base. 4 sectors at least, with some consumer names sprinkled in for fun. My "list" is pretty big, usually about 35-40 stocks, so the client can have some interaction with me on picking the stuff.

I use morningstar workstation, and monitor over and under weights. I try to find 2-3 places I don't like, cut the allocations by half or more. Then, I find 2-3 places I really like, double the allocations. I use packaged product asset allocation stuff, and will also use the ETF or UIT for specialty stuff. Then to finish it off, I buy individual bonds.

Only 5% of assets are in annuities, but I'd really like a Bell Helicopter some day, and I think the missile launcher option is a must. Black preferred, but a dark blue would go nice with the scenery around my office. That'd bring a new meaning to "I'll drop the paperwork off for you"...

For small cap, we've done a fair amount of SP and Russell I shares. But, we've also started doing a fair amount of Royce Funds using their consultant class shares, basically a C share. I like the old crusty style of Royce, and the fact that micro to mid cap is all they do. Royce Opportunity fund, look at the valuation levels, and it appears that you're getting cheaper stocks, for greater upside potential. I also feel that a micro cap or small cap can ride the wave of future small cap IPO biz, which should be red hot soon enough. There are lots of former Fortune 100 employees these days, creating better mousetraps in some garage just waiting to be discovered. 

looking at micro and small cap opportunity funds that can go into any global market. small allocation but starting. Ivy’s got a new one out.