Now that we're in December, one portfolio manager says the best way to position oneself in the new year is with a combination of passive and active investment.
Plus, said Chad Morganlander, portfolio manager at Washington Crossing Advisors, getting into "boring, quality names" with rising dividends will benefit investors most. Here's why.
- With tactical asset allocation, passive vehicles like exchange-traded funds offer exposure to broader markets.
- At the same time, active management and picking low-volatility stocks that will outperform in times of market turbulence are the way to go, he said.
- He recommends health-care and consumer discretionary stocks, specifically Hormel, Dr Pepper, Amgen and Abbott Laboratories.
Bottom line: A mixture of active and passive investments and so-called "boring" stocks will prove to be a smart investment strategy in 2018, according to Chad Morganlander.
Disclosure: Morganlander's firm owns shares of Hormel, Dr. Pepper, Amgen and Abbott Labs. He does not own them personally.