Monday, December 29, 2014

Stocks: "Anyone who thinks they'll get more than 10% this year is smoking dope"

2013 won't repeat?

Stocks: "Anyone who thinks they'll get more than 10% this year is smoking dope"

"I'm buying electric utilities, and I'm looking at one of the large money-center banks that's selling at half the valuation of its competitors," says Robert Costello, longtime Philadelphia-area stock watcher and boss at $80 million-asset Costello Asset Management, about what he thinks will make his clients a little richer, after listening to New York stock-picker Bob Doll and other relentless optimists at the Chartered Financial Analysts of Philadelphia's 10th annual prognosticators' dinner last night.

So he's not expecting a repeat of last year's 31% rise in the S&P 500? "You did well if you were in Gilead and select pharmaceuticals, Norfolk Southern and some of the railroads, Boeing and a lot of the cyclical transportation stocks, a lot of the banks that were up from very depressed valuations," Costello recalls fondly. (He says his own clients added a third to their portfolios and kept a lot of that invested.)

"But you can't buy yesterday's news," he concluded. "Anyone who thinks they'll get more than 10 percent this year is smoking dope."

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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