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In these conditions blue-chips are on sale, i like stuff like Colgate and Proctor and Gamble which pay dividends and have good track records of regularly increasing them and are household words in bare-necessity type products as well as having good access to emerging markets. McDonald's is totally cheap right now as well and has all kindsa things going for it but i'm having ethical pangs about the way their pigs are bred (gestation cages). It's worse than usual and BK and Wendy's have stopped doing it. But as investments go, Mickey's is a veritable tour de force of every possible "buy" indicator. If they never sold another burger their real estate alone is worth their stock price now.
Originally Posted by Yukohama
I also have a special interest in natural gas related companies, especially upstream ones like pipeline companies and their suppliers like Flowserve, which both Motley Fool and Agora like, but it's a lil pricey now. It wasn't 6 months ago.
I subscribe to newsletters from Casey Research (Big Gold, which is mid to hi-cap miners), Agora Financial who does the Daily Reckoning (Tech Profits Confidential, Capital and Crisis, Apogee Report) and Motley Fool Stock Advisor, which is excellent as is their whole site. I pay under 300 bucks a year for all of them and get a pretty good perspective all told.
I also just rigged up a lil hotrod called a Passport IRA for my mom which is a setup that lets you open up a direct brokerage account like ScotTrade using an LLC that's owned by an IRA account, which lets you personally choose and manage assets in your IRA, including physical metals and investment property. See www.passportira.com. Tell Jeff susan 28 sent ya. He'll hang up the phone, hehe..
The metals part is especially cool as you can buy/hold/sell metals all you want and never pay the 28% "collectibles" tax for metal you've held more than a year like you do with OTC physical sales (though sales of gold and silver eagles are exempt from broker reporting requirements, cash transactions over 10k aren't, and non-cash transactions are, well, non-cash transactions, and you're still required to report the sales yourself, which i'm sure you'd always would).
That said, i've given the majority of the most recent rollover to EverBank to manage, as they've got the sharpest guys in the business and specialise in global diversification of all assets including currencies and will set you up a custom portfolio that even includes some FOREX trading depending on your risk tolerance. The projected return spread on the port we did is 3-6.5% for the coming year. I think i could do that, but am almost certain they can and am being cautious with current conditions. Their president, Chuck Butler, is like a hero of mine he's so subversive with what he's doing to free people from dollar-bondage. Check his bank out, it's stupid awesome: www.everbank.com.
So there's some names: Casey, Agora, Daily Reckoning, Motley Fool and, maybe the best play of all right now, hooking up with EverBank.
(ps: Agora's notorious for weirdly-named teasers for commonly-known investments: their "10-86 retirement plan" refers to Multiple Limited Partnerships or MLP's, which are a cool thing but not retirement plans per se, just profit streams from mostly oil companies).
Fave miner: Silver Wheaton (SLW). But don't bet on miners without Casey. Seriously. You see my sig; Ed's a Casey guy, they live and breathe metals and i'm long on those. Accent on the LONG. Don't sweat the volatility of late. Floor may not be in yet, but the ceiling? Emerging market banks are laying in $#@!-tons of gold and will only continue to do so. China's buying as much as it can every month without spooking the herd as it attempts to exit the dollar without bringing its value (and therefore the value of the debt it's holding) down prematurely. Morgan's attempts at price suppression cannot counteract that inexorable fundamental forever.
Minimum 10% of your net worth (excluding residence) should be in physical metal, i'm about 90/10 gold/silver. EverBank will even let you denominate an account in it (!) but i like physical delivery from Camino Coin in Burlingame, Ca. Absolutely, positively best prices and most consistent supplier in the country, period. I've looked everywhere, they're it. Tell them you know me and are a Lew Rockwell reader (which you should be: www.lewrockewell.com) and they'll hook you up with some VIP love.
OH and one more idea for you is Real Estate Investment Trusts or REITs, which are funds of large companies that deal in real estate and provide a pure play on investment property, should you see potential in that. Some of them are companies that have bought large tranches of foreclosed properties recently. Some have dividends, some just grow share price and some are cash-flows like the MLP's, you need to check out their structure, but i like the concept.
Or you could buy some t-bonds, they're only lagging real inflation by like 9% these days on a 10-year ticket.. such a deal!
"For the most part, it was pretty quiet all night long in gold and silver, but I'm sure the bullion banks are still lurking out there somewhere." -Ed Steer