Christmas is fast approaching and at this time of the year, we are acutely aware of all the preparations being made and sometimes the anxiety that the festive season brings. Many of us are racking our brains trying to figure out the perfect gift for our loved ones and friends.

This year, when thinking of purchasing that ideal gift, why not give something that is useful, something that is long lasting, and something that is of value? Why not give a gift that appreciates? At this time of year, investors tend to liquidate their portfolios or take profits for the holiday season and this presents good buying opportunities for fundamentally sound companies.

I remember a story about a young boy who begged his father to buy him a PlayStation console. On Christmas morning, to his disappointment he un-wrapped a gift certificate for tennis lessons. However, by the next year he realised that not only did learning tennis allow him to play and bond with his father but he got the opportunity to represent his school. The moral of this story is simple, a practical gift can be a gift for life.

You can consider local and international opportunities to create a diversified portfolio for your family. With the Jamaican economy having displayed three consecutive quarters of growth this past year, contrasting thirteen prior quarters of negative growth, our expectations are in-line with those for continued expansion in the fourth quarter. Inflation is also within target and the exchange rate remains stable, making now a good time to invest in local alternatives.

When selecting stocks, choose companies that have been performing consistently and have growth potential. Remember also that there is no minimum amount required when investing in equities and that you can spread your currency risk with stocks in various regions.

Pan-Jamaican Investment Trust Ltd is an equity option offering stability, having displayed solid growth for the past several years. The stock, for which SSL has a price target of $68, has been trading at a range of $63 and $64 over the past few weeks. For the third quarter, the company’s net profit climbed 33.1 per cent to $454 million, boosted by improved results from its property segment and strong earnings from its associated companies including Sagicor Life Jamaica Ltd. The conglomerate continues to be diversified and is somewhat of a mini Berkshire Hathaway Inc. For example, its recently acquired stake in Walkerswood continues to perform well and its upcoming development of a Marriott Hotel in New Kingston is expected to yield additional benefits.

As a buffer for your portfolio, dividends are ideal, especially in times of global volatility. They provide cash flows and often consistent returns coupled with the opportunity for capital appreciation. Therefore, seek companies that pay dividends, they are like gifts that keep on giving!

SSL also sees a good opportunity in picking up shares of the National Commercial Bank of Jamaica Ltd between $28 and $29. We maintain a 12 month price target of $40 on the stock which has been trading at a range of $28 to as high as $33 per share over the past few weeks. For the year ended September 2011, the Company’s Net Profit climbed 17.69 per cent to a record $13.03 billion as Operating Revenue jumped 20.2 per cent to $26.19 billion and the Group recorded a one-off Gain from Associates of $1.02 billion. Additionally, the imminent cross listing on the New York Stock Exchange may provide an additional boost for an already attractive stock with a strong dividend yield of 6 per cent.

As the overseas market continues to be volatile, SSL recommends buying blue chip stocks on market dips and holding for the long term we suggest investing in Companies that continuously reward shareholders with cash. The Coca-Cola Co, for example, has a 2.83 per cent dividend yield and has consistently increased dividends for the last 49 years. The stock has also appreciated by more than 40 per cent over the last five years.

However, you must ensure that you diversify your assets by also including fixed income products in your portfolio. The Government of Jamaica offers treasury bills, and fixed interest rate Jamaican dollar and US dollar bonds. Additionally there is a vast array of corporate bonds than can be purchased globally.

You may also include preference shares in your portfolio – hybrid instruments that contain features of both bonds and stocks. They pay a coupon whilst providing the opportunity for price appreciation. To put this into perspective, if you wish to invest in Canadian dollars you can purchase the Bank of Nova Scotia Preference Series 13 that mature in 2049 and offers a coupon of 4.8 per cent. Alternatively, the Bank of America Corp offers a US dollar denominated preference share, paying a coupon of 8.625 per cent and matures in 2049.

There are many options to choose from depending on your risk appetite, the key is to begin, act wisely and stay abreast of current opportunities. Yesterday, SSL hosted an Investor Briefing at the Terra Nova Hotel for our next Initial Public Offering (IPO), C2W Music Ltd. This is an intellectual property company that partners Caribbean songwriters with International songwriters and exports the songs worldwide. It is the first startup Company seeking admission to the Jamaica Stock Exchange Junior Market and as such offers long term potential for portfolio growth. Further details on this exciting opportunity will be provided in the Prospectus which will be published in short order.

So during this time, give gifts of value but remember that preparations should not just be limited to the holiday season, but should extend throughout the year and having financial guide is crucial. Your SSL Wealth Advisor will assist you with providing further recommendations and to help you create a portfolio geared towards your specific needs.

Nicole Ziadie, is the Manager, Wealth Division at Stocks & Securities Ltd. You may contact her at nziadie@sslinvest.com