Investing
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No commodity has disappointed more than uranium. But don’t let that put you off. Now is the perfect time to become a uranium buyer. (I’m assuming that you’re not the head of state of either North Korea or Iran!) Prices hit $136 in 2007 and then began a long pullback to around $40. They bottomed in April and have since rebounded to the $50 per pound level.
Currently, silver is trading around $15 per ounce, already up 40 percent for the year. To take advantage of what is almost sure to be a continuing rise in price, you can buy silver bars or silver coins (e.g., American Silver Eagle bullion coins or Canadian Silver Maple Leaf coins). Physical silver can be stored in a home safe or in a secure hidden location that only you and another trusted person know about.
De-coupling lives again, but I wouldn’t bet the farm on it. Remember when it made the rounds over a year ago? The idea was that even if the U.S. economy caught pneumonia, the rest of the world would at worst get a bad cough. It was argued that Europe and China were much less reliant on the U.S. economy than ever before. And China, with its massive import needs, would also keep economies from Brazil to Australia humming.
Their profits are up. Their write-downs are lower. The government is riding shotgun for them. And the worst is over. The banks are back, right? Goldman Sachs, JP Morgan, Bank of America, Wells Fargo, and even Citigroup all reported profits for the first quarter of 2009. But a closer look under the hood reveals some “creative accounting”…
No matter what kind of business you run, I have a secret that can help you make money even while the recession has your clients’ wallets shut tight.
To tell you the truth, this secret is a good way to make money any time.
India is one of the world’s fastest-growing (and most stable) economies, with strength in its agriculture, textile, and service sectors. Services are its main source of economic growth, accounting for over half of India’s output with less than a third of its labor force. And India is on track to open up its retail, insurance, and banking sectors to more foreign investment.
In today’s economy, there is more uncertainty among investors than there is among novices shopping around at an antique store.
Do you have a mortgage with a variable or high interest rate? If you do, it makes a lot of sense to refinance. Thirty-year fixed-rate mortgages are currently only about 5 percent - and you want to lock in a low rate now, because inflation is on the horizon.
Buy Quality
by Ted Peroulakis (05/27/2009)
These are risky times for investors. We are still suffering from a financial crisis and global recession. One way to ride out the turmoil is with blue-chip stocks that keep raising their dividends.
A common saying on Wall Street is "Sell in May and Go Away" - meaning May’s a good time to sell your stocks and take a vacation from trading because the stock market is going to drop in the summer months.
The earning season is drawing to an end. But even before it began, we already knew that a lot of companies were in big trouble. Their dividends told us.
Conventional buy-and-hold stock investing is not working in today’s market. Trading E-Minis is a great alternative, because you can take full advantage of the market’s volatility.
Although the markets of the BRIC countries (Brazil, Russia, India, and China) have crashed along with those of the rest of the world, these countries have tremendous growth potential - which could mean investment opportunities for you.
BRIC is an acronym for the combined economies of Brazil, Russia, India, and China. These developing countries have seen their stock markets plummet along with those of the rest of the world, but now is a great time to invest in them. Their stocks are oversold and they still have high growth potential. Plus, BRICs typically have lower labor and production costs, so companies in other countries are looking into the opportunities they offer for foreign expansion and trade.
You might think that you and your investments don’t stand a chance against the Wall Street giants. But the fact is, you can gain a big advantage simply by doing one incredibly simple thing:
In the past 12 months, a rookie investor named Richie has increased his money by over 300 percent, trading with a certain method that he learned in approximately one week.
You are probably familiar with the Pareto Principle, also known as the 80/20 Rule. It states that 80 percent of your results will come from 20 percent of your efforts. And this applies to investing as well as most other endeavors. For instance, 80 percent of your gains will likely come from 20 percent of your investments.
Agricultural products, including corn, wheat, and soybeans, are absolute necessities for human existence. And with the world’s population quickly increasing, demand for these commodities will skyrocket… and push prices much higher.
As a result of expenditures for economic relief programs and government bailout programs aimed at getting us out of this recession, the U.S. budget deficit for fiscal 2009 is already close to $1 trillion, the biggest in history. In fiscal 2008, the deficit was a record $455 billion, and this year’s could be four times higher, possibly hitting $1.8 trillion.
For months, my colleagues and I at ETR’s sister newsletter, Investor’s Daily Edge, have been pounding the table about how this market is a stock picker’s dream. We have said things like, "Millionaires are made at this point in the market cycle," "Stocks are really cheap," and "Build a bulletproof portfolio now." But most people can only hear the doom and gloom news, and it always ends up costing them money.
For decades, stock market participants have been led to believe that “investing” is safe… while “trading” is risky. But the way most people “invest” is about the riskiest way you could possibly manage your money. The prevailing advice has been something like this:
Since the market turned around and started doing its rocket imitation, most people I have spoken to are shaking their heads saying, “It isn’t real,” “It has no legs,” and “It’s 1933 all over again.” Since when are we supposed to be suspicious of a rally?
When investigating companies to invest in, I look at several margins - gross, operating, pre-tax, and net profit margin. But I focus on operating margin. Operating margin is the difference between how much you make and how much you spend to operate the business. If the “making” is at least 15 percent higher than the “spending,” I’m interested.
In an industry full of missteps and forced resignations, Hyundai is one company actually headed in the right direction. First off, the economy is playing right into Hyundai’s hands. Long known as a maker of low-priced vehicles, Hyundai in an enviable position. The Sonata is priced roughly $2,000 less than a Toyota Camry, and the Santa Fe SUV is almost $10,000 less than a Toyota RAV4.
Buy China Now
by Steve McDonald (04/13/2009)
China will lead the world out of this economic slowdown, and the money to be made by investors is beyond your wildest dreams. Three reasons China will explode: (1) They have no debt and a $3 trillion surplus. (2) They consider 6 percent growth to be a recession for their country. (3) Most important, China’s government puts China first.
The PEG ratio compares a stock’s price (as measured by the price-to-earnings ratio or P/E) with its earnings growth. When used correctly, PEG can help you find great companies.
Real estate prices are down substantially, and many foreclosures and short sale opportunities are out there for the picking. We are certainly in a buyer’s market. But is this the time to buy? Or will prices head even lower?
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