We have been talking about more dynamic items like the Semi equipment stocks lately, but here is another subject that may have a place in a well rounded portfolio. The two global income funds I have used in the past are the Templeton funds GIM (Global income) and TEI (Emerging Markets income). If the US dollar follows through on its currently bearish bias, these funds could not only provide a dividend, but also net asset value gains.
In this update I’d like to focus on TEI (all relevant information available here), since the Emerging Markets stand to gain if the USD continues bearish (while in a bearish stance, USD is still above notable long-term support). Here is the current price to NAV setup for TEI, which is trading at a discount to NAV of 11.5%.
The fund pays a dividend of $.20/share quarterly. The ex-div. date on the July distribution is June 27.
As for the chart, the daily is stable as it nestles above the SMA 50.
The weekly has climbed above a key resistance level, now support. This support can be used as a ‘stop loss’ for those not committed to the global theme, a USD-centric ‘inflation trade’ or this form of portfolio diversification.
As usual with macro type NFTRH+ updates, we’ll not list buy, sell, stop in a regimented manner. I just want to get this view in front of you as an idea on one small aspect of a portfolio should the inflation theme come to pass as expected. What I like about the above is the combination of a historical ‘value’ reading on the discount to NAV, the regular dividend and the price chart above support.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.