Topic: How To Invest

What is Pat’s commentary for the week of January 20, 2015

Article Excerpt

Theme investing has natural appeal. It simplifies things. Investors like it because they feel it can put their investment returns into overdrive. Some also feel it adds fringe benefits to their investing, by letting them support social objectives. Brokers like it because it gives them a rationale to recommend a variety of stocks. If a client thinks gold prices are headed up, a broker can think of all sorts of gold-themed investment opportunities. They include established gold miners; junior gold companies that are working on a promising gold property; or penny golds that are outright speculations. Other possibilities are financial companies that sell gold-related merchandise like gold coins. If the client supports environmental causes, the broker can propose investments with a “green theme”. They include solar-power equipment makers; companies that claim their products are less harmful to the environment than competitors’ products; or companies that claim to operate with a high degree of environmental concern. When you focus on an investing theme, however, it’s…