Whether it be the slumbering gold worth or the staggering stock market, 2014 brought with itself a tremendous financial misfortune that affected people from all walks and spheres of life. However; with a new sun bringing forth hope and optimism in 2015, financial gurus are foreseeing some betterment in condition and are thus plating out the possible arenas to explore in the year. A detailed study of the market trends and a series of fortunate financial events taking place across the world weaving themselves in the string of destiny, have some interesting patterns to reveal, which when unveiled will probably deliver the economic world some respite. Hence; if you are looking forward to plan the year ahead on a beneficial or profitable note, you would definitely not want to miss out on some hot investment opportunities that can really alter the facet of your portfolio for the year ahead.
Giving the stock market a thought
Although the figures at the stock market really failed to impress and investors witnessed some serious casualties, the last quarter of the season set the road ahead for some glimmering hope. Experts suggest holding stocks and bonds in the ratio of 50-50% for elderly people who are moving into their retirement stage. However; US stocks being still the best performing assets, are suggested to be in hold of a young person, in as much quantity as 80%, as risks are seemingly far less for the youngsters. With small cap funds outperforming their expected returns, finance gurus are really stressing it on the small caps. A simple equation that puts it forward is that despite the stagnation in the growth of leading companies in world, it is the small or developing companies which are dishing out profits and now is the right time to reel in the returns. Flaunting a handsome growth rate of 20.28% as compared to the daunting -3.3% rate of the Fidelity Select Retailing Portfolio, small
cap investment surely is
seemingly going
to rope
in more
trust than
any other
types of
stocks. Market analysts and
gurus like
Ronald Temple, the portfolio manager and
managing director with Lazzard Asset Management, has a say
to better stay off
from the
bonds of
the developed countries, due
to a single reason that
his perceptions about the
risk and
reward ratio
of these
bonds is
very “assymetric”. Hence; if you
want to
patch up
the holes
and scratches from the
last financial year, investing in small
caps stocks can be
a better and undoubtedly a safer
option.
Viewing
the world
stage
Other than
keeping an
eye on
the small
caps, experts are really stressing it
hard on
the stocks of the
emerging markets, like the
MSCI Europe Stock. According to Taylor Gang, the
principal of
a Financial Wealth Management company, these
stocks are
pretty unpopular among investors and being
comparatively cheaper, these provide a lot
of scope
for higher profits. Other than
Europe, it
is also
advisable to
pay a heed
to the
growing of
growing economies like China
and India, where things despite being
still residing in the
grips of
recession, are
hopeful. The
most important and useful factor about
the stocks of these
emerging economies is that
the stocks of these
countries are
still the
cheapest and
their return rates are
expected to
meet high
levels. For
instance, India
has been
a country that is
still struggling with recession and political debates. However; with the
implementation of
several measures by the
Reserve Bank
of India, India has
been able
to combat the recession pretty well.
While it
was soaring somewhere around 11% during the initial days of
the last
year, the
heat has
died down
a little and growth rate of
the country's economy is
expected to
rise from
5.6%, as
it was
in the
last year
to a whooping 6.4% in
2015. The
fact that
the developing or emerging markets are
also stressing on and
are implementing quantitative easing to
make things look better on their
front is
also a factor to rejoice about. A combined power of
multiple positive factors make
these stocks a better bet this
year.
Stick to US Dollar
While the world economy is still struggling with recession and the economic sector has witnessed a steep downfall in the value of currencies of several major developed economies, the U.S Dollar has been successful in garnering better values with a recorded U.S Dollar Index (DXY) of -0.15% in January 2015. This successful rendering of the rates last year has helped the U.S Dollar retain its sheen in the eyes of the investors, especially those who deal in currency trading and betting on U.S stocks which bet on the change in value of the U.S Dollar, like the U.S. Dollar Index Bullish Fund, which recorded a decent 9% return in 2014 and is only expected to perform better in the year ahead. With the US dollar being slowly transitioning into the overbought condition, market trends are reflecting that the upscale of the US Dollar value is seemingly the highest in the last 5-7 years and with the growth projections exceeding expectations, returns are seemingly going to unfold way sooner than when it has been forecast. With the statistics reflecting a positive journey for the US dollar in 2015 and the subsequent years to come, expert suggestions to stick to the US Dollar to create a safe play zone in the year to come cannot be denied.
Move from bonds to stocks
Bonds have always been the most preferred and trusted wagons for investors who plan on long term investments and are up for secure gains. However; with moves being implemented by various organizations, stocks are expected to garner higher fan following this season than bonds. Equity investment in 2015 is surely going to be a hot investment strategy, as stocks are expected to bring in higher profit rates than bonds, and bonds which have been a major source of emergency investment backup for most investors, will be witnessing a major downfall in their return rates. With the US stocks seemingly going to exist in the Bullish market for the next 10 months and the yields from the bonds seemingly heading towards a decline, it always becomes more suggestive and meaningful to stick to stocks this year than to find a safe haven with the bonds. Moreover, investing heavily in private equities and stocks is also still the best measure or weapon to fight recession, a phenomenon, that is not going to leave the lands too often. The trick here would be though to rely on long term investments
rather than concentrating more on liquidizing the assets too often. This is
because, the average payout for the stocks will be comparatively lower than what
we witnessed and rejoiced in the past 10 years. However; staying honest with
same stock for a longer duration will definitely promise more yield, as bonds
are anyways going to enter into a detrimental phase.
MLP investment
Investing in MLP or Master
Limited Partnership company stocks is one of the best bets for the year 2015.
These assets function and are traded just like stocks and despite the trembling
base of oil prices, these companies, which primarily deal in pipelines and gas
and oil storage, are definitely going to secure overall good returns. While the
steep stooping of oil prices have really offended investors in the year which
passed, these companies are expected to secure better results, primarily
because these deal in pipelines and engage themselves in long term contracts
for transporting oil. It is believed that it is because of the operation styles
of these companies that the dividend rates of these companies will witness
tremendous growth in the future and the results are also believed to be not to
far settled. With returns promising a range of as high as 7%, investing in MLPs
are in no way a forced asset investment decision today, especially in a time
where even the best performing stocks of the past 10 years failed to perform
and even stand up to their expected rates. While it's true that MLP investment
can be one of the most important investment strategies to take for the year,
choosing the right stocks while being in the hunt for good MLP stocks, is also
equally crucial. Hence; if you are really hunting it hard, you can definitely
take a look at the midstream MLP stocks. While the fact that midstream MLP
stocks are not completely safe from the factor of abrupt price change and price
drop, these stocks surely are immune from the factor of volatility. Being fee based,
these stocks are blessed with minimal direct commodity risk, which in turn
ensures secure results and returns for the investors. The fact that the demand for
energy resources remains almost always steady, these energy stocks run minimal
risk of going down the drain.
Experts are suggesting to
capitalize more on the oil and gas transportation stocks rather than on gas
gathering stocks, since the transportation stocks are estimated to constitute
for as much as 60% of the capital spending. However; other than that, experts
are suggesting to keep an eye on rail transportation as well.
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