If you read today’s headlines, you’ll hear everything from recession, decline, slow start, etc. Everyone comments on very marginal gains or losses. However, there are some investors like me who have done very well in recent years and continue to do well, and none of us fell for the late night TV investment scams (and they are ALL scams). Instead, we were smart. Here’s how we did it and what we like (and you can check the results or progress of these stocks by searching for their ticker symbols on Google and Yahoo search engines):
1) Diversification is key: You should have a percentage of your assets in mutual funds and exchange-traded funds (ETFs). I recommend IJR (iShares S&P SmallCap 600 IJR Style/Mkt Cap ETF) as it follows the market, doesn’t have wild fluctuations and always grows steadily and pays dividends at the same time. IJR will be a great bet for a 20-30% gain in 2006.
2) Oil, natural gas and energy are king and anyone who says otherwise is an idiot. They will continue to grow and produce record profits throughout 2006. I highly recommend XTO – Cross Timbers Oil Co. Over the last 3 years their stock has grown over 800% and has split multiple times. They are a definite ace in the hole and a huge favourite. Great, solid management and a definite winner. I also like PNY, Piedmont Natural Gas. They are very consistent and produce very solid returns that are always on the rise. It won’t produce the high yields of XTO, but it will deliver solid performance. XTO can be a highly volatile stock and is a roller coaster ride at times, but it will produce solid results over time. PNY is a safe and sound investment and natural gas prices are only going to go up.
3) Hotels and Travel: One Name Says It All CHH: Choice Hotels, they own most of their local Comfort Inns and such. They average 50-60% earnings per year and pay a slight dividend on top of that. A solid player who tends to oppose the economy.
4) Banks and Financial Institutions: BPOP, Popular Inc. Puerto Rico’s leading Latino bank and expanding into the US You can buy it cheap right now and they are great for a buy: $$$. Solid dividends too and low price for a bank. Good investment value.
5) Mortgage companies: We will always need houses and a solid, customer service oriented company with a great track record is a good buy. AHM (American Home Mortgage) – Strong, high-performing company that will produce great returns in 2006. Enough is enough.
6) Ebay, Yahoo, Google, Intel – You need to have a piece of the Internet pie, but with whom? eBay is your best bet. No competition: Yahoo tried and failed to get its auctions off the ground. The others have simple technology that is easily copied and the risk is high and the returns limited. Google is questionable as it has grown well, but others with deep pockets are stepping in forcefully: Yahoo and MSN.
Search engines like Google quickly appear out of nowhere, but then often fall back into oblivion. However, Google is smart and trying to branch out into other fields – maps, online libraries, gmail, etc – so they will stay, but I would go with Ebay. eBay is trying to do what Walmart did: expand into China, Japan, Korea, etc. With billions of new customers and no competition, the sky is the limit. eBay will be rock solid in 2006.
There you go. A safe and diversified group of true and proven performers that will guarantee you a great 2006. Plus, they’re all available through low-cost commercial companies. I recommend Sharebuilder.com. You can’t beat the $4 trades and their easy to use site. There is no need for a commissioned investment advisor (all they do is charge you extra money and fees, bullshit, and they may not even come close to the workhorses I mentioned above). Do yourself a favor and print this. If you care about your friends, give it to them. Put it on your email lists. If you believe in helping others and making the world a better place, pass it on to everyone you can. These stocks will provide you and everyone else with solid earnings for years to come. And a greater opportunity for financial freedom and the best part is that it didn’t cost you a dime.
Just do me a favor and visit and promote my sites listed below (www.mdwholesale.com and http://www.bestskinpeel.com).