It is a Christmas time and actually my company is closed for all the week and 3 more days till Jan 1, 2014. Lucky for us, isn't? Not so for me. Actually I'm working all the days, even more including the weekends. Why so? Well, the product I'm responsible for is undergoing a submission with a very tight timeline. I have to capture up with all the newly available data to digest and summarize. I'm kind of overloaded at the moment. Anyway, back to investment. As I indicated last time, I'd like to make some predictions for 2014 but just put the idea out there without much details. I may delineate more later when I have more time. These are the big trends I'm seeing, which may help you make some money if you also believe so.
Muni bonds - Municipal bonds are those issued by towns or cities, which are historically very safe and reliable as a high yield income source. Even better they are tax free. Right now, you can buy Muni at a huge discount and this is the best time to buy Muni. I like a Muni ETF, NEA, which is at about 10% discount and paying 6.6%. This yield, since it is tax-free, is equivalent to about a 10% yield if taxable. I bet Muni will be doing fine moving forward and when it does, you you also enjoy a nice capital gain, when it comes back to its normal valuation, in addition to the high income yield. NEA is trading at $12.11/share at the moment and is paying its interest on a monthly basis, another good feature if you let it compounded.
Coal - Coal has been beaten down terrible in the past 2 years but I think it has likely bottomed and now is a good time to buy coal. Like steel that I have talked about in the past couple of months and my AKS call options have shown me 500% gain, I bet coal may follow a similar path. The easiest way to invest in coal will be its ETF, KOL, which is traded at $19.43 per share.
Copper - Similarly, copper has likely bottomed and I think it will capture up with the recovering economy, especially in the emerging market. I like FCX, the biggest copper mining company in the world. This is a company with a lot of discounted great assets and is also paying a very nice dividend over 3%. FCX is currently traded at $37.5 per share.
Technology - Not like those mentioned above that have been beaten down badly till now, the technology sector is actually doing very well in the past 2 years. But I bet it will continue doing fine in 2014. I like the leveraged ETF, ROM, which is trading hands at $108.84. If it ever comes down in the near future, that will be a great buying opportunity to get in.
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