5 Great Money Making Investments for Everyone
Posted in Investments by Kevin | Tags: agriculture, Corporate, energy, food, gold, Health, invest, Investments, oil, Personal Finance, safe, shares, stocksIn this volatile economy, is there such a thing as a good investment?
Every morning, I read the Wall Street Journal for a glimmer of hope for the US economy. On some days, today being one of them, the paper is filled with good news followed by a positive forecast and a upbeat market. Just when I think we have what it takes to get out of this economic stagnation, my hopes are dashed with one bad news after another. For myself and others following finance, this has been the common theme for the entire past year. We all face the same question: When will there be any certainty in forecasts?
Perhaps some of you know. I definitely don’t. My goal today is to give you write about some stability in the midst of volatility. Perhaps, investing in the stable is what it takes to revive the entire world market?
I. Agricultural Technology Stocks
The recent media hype around Potash Corporation and the hostile takeover bid by BHP Biliton LTD have brought to my attention the necessity of agricultural advancements to keep up with world demand. BHP has offered almost $40 billion in hopes of becoming a top producer of Potash (Potassium derived compounds used heavily in fertilizers). Several other small offers soon followed. The world will come out of the recession understanding that demand has exploded. Investing in innovative firms won’t make you a millionaire overnight, but will be a great producer in your portfolio.
2. Pfizer
Health care stocks, namely Pharmaceuticals, have been underperforming ever since the health care reform bill was passed. There are two major reasons for this: $140 billion worth of the top blockbuster drug patents will expire in half a decade (Source: Money Magazine) and there are investor fears of profit declines as prices drop. Pfizer is the largest Pharmaceutical firm and has been actively pursuing the emerging drug markets (the likes of Iran, Turkey, Venezuela, Poland) and have bought out smaller and more innovative firms in hopes of developing new drugs. This health care giant pays off great dividends and will only be growing as health care costs increase in the near future.
3. Gold
Everyone is pessimistic about the short term prospects of gold. When it was 1,100 ‘experts’ were betting that it would fall. Now, gold is hovering around the mid-1200s, and there haven’t been any signs of a price drop. Even in the worst case scenario, gold prices tend to be stable around inflation. In the long term, gold prices always increase as it is an unsustainable commodity used for jewelry and electronics.
4. Oil Companies
With all the hype surrounding massive losses by BP, people seem to forget that ExxonMobile is still the second highest grossing company in the world and oil prices are only going to increase. Modernized oil companies that can prove to state officials that their methods of offshore drilling are safe and environmentally friendly. Since the BP spill disaster, some drilling firms have lost up to 50% of their value. It’s a buyers market – once the media frenzy is over, these stocks are skyrocketing. You can’t go wrong with oil.
5. Express Scripts
One of the three largest PBM’s (Prescription Benefit Manager), Express Scripts has one of the lowest operating margin in the health care industry. A recent struggle between Walgreens’ and CVS’ respective PBM’s have disenchanted loyal customers and allowed Express Scripts to come out of fire unscathed. Now trading at a relative low, express scripts is a great stock to snatch (currently around $44 a share with a 52 week high of $54). PBM’s are only becoming more influential as drug costs increase and are now offering more services than ever before. Jumping on this bandwagon will provide you with a stable investment during these turbulent times.
I have highlighted 5 safe investment ideas above. What do you think about my choices? Do you have any to add yourself? Let the readers know!
2 Comments to “5 Great Money Making Investments for Everyone”
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Barb Friedberg says:
Hi Kevin, To respond to your first question, when will there be economic certainty, I have the answer: NEVER. The economy goes through cycles and all investments are cyclical, some more so than others. My recommendation is not to worry about the short term, but choose a diverse group of index funds, put a percentage of your assets (according to your risk tolerance) in each one and relax. Of course, don’t invest any cash you will need in the next 5 years!
Kevin says:
Barbara,Thanks for the great tips! Hopefully, some of my readers follow your advice.Cheers,Kevin