How to Profit From the Rebound in Natural Gas Prices
By
Jack Barnes
I love autumn. The leaves start to turn color where I live, and the first hint of winter is invigorating. It is also a great time to peruse each of the financial markets for the shorter-term, seasonal trades that are always lurking — if you know where to look, that is.
One place that’s worth looking at right now is the global currency markets, where a major war is currently being waged. As part of the so-called “race to the bottom,” the U.S. dollar is down 14 percent since June. This drop in the greenback has come at a time when a major bull market in commodities has broken out everywhere in the world.
Gold, silver, wheat and corn have all recently achieved multi-year highs. Cotton just hit its highest price in 140 years.
There has been an exception, however — a headline commodity that’s been left behind. Indeed, this particular commodity has been in decline for six months, dropping almost daily. But that’s about to change. More…
Creating Your Own Investment Strategy
By
WEALTH Magazine Staff
So you are an investor or have decided you will become one. How do you develop a solid investment strategy?
First, determine your goals. Then, establish how much time and money you have to invest. Finally, choose a mix of investment products that fit your situation.
Your Goals
Of course, every investor wants to earn money. But you must force yourself to be specific. How much money do you want to earn? How soon will you need those funds and for what purposes? More…
From Leader to Laggard: It’s Time to Short the Dollar
By
Keith Fitz-Gerald
The U.S. dollar was one of the world’s strongest currencies in the first half of 2010.
And it’s no wonder. The Greek debt crisis threatened Europe’s economic health at the start of the year, and new pockets of financial trouble have arisen most recently in Britain and France. Then there’s China—the engine of world growth during much of the financial crisis—which now appears to face the near-term triple threat of slowing growth, accelerating inflation and workplace unrest. Add in concerns about commodity prices and global debt levels, and it’s easy to see why currency investors sought the safe haven of the U.S. dollar.
But is the greenback really the best choice for safety, quality and security? More…
Emerging Market Investing: Forget the BRIC Nations and Buy This Country Instead
By
Carl Delfeld
When it comes to emerging market investing, there’s no doubt that the BRIC nations—Brazil, Russia, India and China—dominate the headlines.
Sure, they’re big, important countries. And together, they make up roughly 50 percent of the iShares MSCI Emerging Market Index (NYSE: EEM), which is obviously a significant chunk of the popular exchange-traded fund.
But what about the other 17 countries in the fund?
For some time now, I’ve been monitoring a country that is well off the radar screens of even the most sophisticated investors–one that I think represents a bigger prize than the BRIC nations. More…
Write Covered Calls to Boost Your Stocks’ Profits
By
Mark Andrews
Owning stock that you think is headed for the heavens is good, right? Well, yeah, we all love that.
How about owning stock that may rise just a little—but let someone pay you a fee in return for your agreeing to sell them the shares at a modest profit? And perhaps doing this again and again, month after month, until—oh, either you get tired of making money, or the stock runs out of room to run?
Educated investors, including graduates of Wealth Magazine Investor Education, know this easy-to-use tactic to be writing covered calls. More…
Investing in Precious Metals: Bullion or ETF Shares?
By
Brian James Markel
Diving into the world of bullion investing can be a scary trip. You have some doomsayers who gasp at the thought of money that’s only as good as the government’s word as they dig another hole in their yard for a few more 100-ounce silver bars. At the same time, you have Wall Street just beginning to respect precious metals as they slowly make their way onto the trading floor in the form of exchange-traded funds. More…
Consider Adding Exchange-Traded Funds to Your Portfolio
By
WEALTH Magazine Staff
The stock market’s volatility has frightened many investors, and some have skittered off into the shadows for good. If you’re worried about the market but not yet ready to abandon it, perhaps it’s time to consider exchange-traded funds, or ETFs, as an alternative to individual equities.
ETFs look like mutual funds but behave like stocks. They are ideal for the individual investor in that they offer low cost and quick diversification—many funds spread assets across dozens or even hundreds of individual securities. You can buy as few as one share, unlike mutual funds. More…
What Factors Should I Consider Before Expanding My Stock Portfolio?
By
WEALTH MAGAZINE STAFF
While about half of all Americans hold some investments in the stock market, only an estimated 20 percent own equities beyond an employer-sponsored plan. So if you are actively investing your money, you’re already ahead of the curve.
But before you look to pump more money into the market, take a moment to ask yourself a few questions first. More…
Defensive Investing: Beware of Municipal Bonds
By
Martin Hutchinson
Money Morning
Of the speculative excesses that misguided monetary policy and a prolonged recession has caused, the one that poses the most danger to investor wealth is the financial bubble in state and local municipal bonds.
Municipal bonds — usually referred to as “munis” — are popular portfolio plays because of tax advantages that, in effect, enhance their rates of return. There’s also an allure because of their local nature: Investors can invest in specific bond issues that provided the money for projects such as schools, highways, bridges, hospitals or housing More…
Now May Be a Good Time to Buy the Euro
By
Dan Weil
Investment adviser Jim Rogers is thinking about buying the euro after its recent drop to a four-year low against the dollar.
It’s not that he’s gained any confidence in Europe’s handling of its debt crisis – quite the contrary. But any asset that drops so sharply should be due for a bounce, Rogers says.
“I’m as confused as anybody else. I’m basically short stocks and long commodities and trying to figure out whether to add to the euro yet,” he told CNBC. More…