If you read the headlines today you will hear everything from recession, decline, slow start, etc... Everyone is commenting on losses or very marginal gains. Yet there are some investors like me that did really well in the last few years and are continuing to do well - and none of us fell for the late night TV investing scams (and they are ALL scams). Instead we were smart. This is how we did it and what we like (and you can verify the results or progress of these stocks by looking up their ticker symbols on the search engines Google and Yahoo):
1) Diversification is key - you need to have some percentage of your assets in mutual funds and exchange traded funds (ETF's). I recommend IJR (iShares S&P SmallCap 600 IJR Style/Mkt Cap ETF) as it follows the market, doesnt have wild fluctuations and always, consistently grows 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 that says otherwise is an idiot. They will continue to grow and produce record profits throughout 2006. I highly recommend XTO - Cross Timbers Oil Co. Through the last 3 years their stock has grown over 800% and split numerous times. They are a definite ace in the hole and a runaway favorite. Great, solid management and a definite winner. I also like PNY, Piedmont Natural Gas. They are very consistent and produce very solid yields that they are always increasing. It won't produce the high returns of XTO, but a solid performer. XTO can be a highly volatile stock and is a rollercoaster of a ride at times but will produce solid results over time. PNY is a safe, solid 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 your local Comfort inns and such. They average 50-60% gains per year and pay a slight dividend on top of that. A solid performer that tends to buck the economy.
4) Banks and financial institutions - BPOP, Popular Inc. The main latino bank of Puerto Rico and expanding into the U.S. You can buy it cheap right now and they are prime for a takeover - $$$. Solid dividends also 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 record is a good buy. AHM (American Home Mortgage)- high yield, solid company, will produce great returns for 2006. Enough said.
6) Ebay, Yahoo, Google, Intel - You need to have a piece of the internet pie, but with whom? Ebay is your best bet. There is no competition - Yahoo tried and can't get their auctions off the ground. The others have simple technology that is easily copied and the risk is great and the returns limited. Google is questionable as it has risen well, but others with big pockets are stepping in hard - Yahoo and MSN.
Search engines like Google rise fast out of nowhere, but then they usually fall back into oblivion. Google is smart, though and is trying to diversify into other fields - maps, online libraries, gmail, etc... so they will stay, but I would go for Ebay. Ebay is trying to do what Walmart did - Expand into China, Japan, Korea, etc... With billions of new customers and no competition the skys the limit. Ebay will be rock solid for 2006.
There you have it. A safe, diversified group of true, proven performers that will guarantee you a great 2006. Also, they are all available through low cost trading companies - I recommend Sharebuilder - you can't beat $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, lie, and they can't possibly even come close to the workhorses I listed above). Do yourself a favor and print this out. If you care about your friends give it to them. Put it in your email lists. If you believe in helping others and making the world a better place then pass it on to everyone you can. These stocks will provide you and everyone else with solid gains for years. And a greater chance at financial freedom and the best thing is it didn't cost you a penny.
This article examines the best stock picks for every age group, from newborn through retirement and beyond.
Before acting on any of these stocks, be sure to thoroughly research the companies and then speak with an investment advisor. These selections are purely for entertainment purposes, and are not to be taken as financial recommendations.
Stock Picks For Your Kids
Newborn/infant: Buy $500 worth of stock to commemorate the birth of your child or grandchild and establish a custodial account with yourself as trustee.
Your investment will have plenty of time to grow, so look for companies with solid growth potential over the next 20-30 years. Stocks: Quantum Fuel Cells (QTWW), Bidu.com (BIDU).
Age 5-12: Buy 10 shares of a company your child can relate to and gift them to him or her. Stock picks: Walt Disney Corporation (DIS), Hasbro (HAS).
Age 13-17: Now is a great time to get your kids into investing. Their interests have changed, but the logic remains the same - buy shares of a company that makes a product or provides a service that they use. Stocks: Nike (NKE), Abercrombie and Fitch (ANF).
Age 18-22: People of this age can begin investing on their own. Again, they should be looking for growth. They can afford to speculate, but at the same time, its important that they don't get discouraged by having their investments go bad.
As a result, people age 18-22, typically college students, should play it a little more conservatively than the next age group. They can afford to be a little more aggressive once they get the hang of the market. Stock picks: Apple (AAPL), Yahoo! (YHOO).
Stock Picks For Your Working Years
Age 23-29: Young professionals should develop the habit of saving early on by fully funding their 401k's and establishing self-directed Roth IRA's right away. If people of this age recognize that they are in it for the long haul, they can afford to be aggressive with their investments. Stocks: Google (GOOG), Hansen Natural (HANS).
Age 30-39: People of this age who began investing in their twenties may want to tone down the aggressiveness of their portfolio just a little bit, perhaps by adding some bonds. But those who are just getting started need to be even more aggressive. Stocks: EZCorp (EZPW), Paychex (PAYX).
Age 40-49: By now, you should have a decent nest egg built up. It is probably wise to add some fixed income investments to your portfolio and to reallocate your funds into more stable growth companies. Stocks: Advanced Micro Devices (AMD), Archer Daniels Midland (ADM).
Stock Picks As You Approach Retirement
Age 50-59: Now you want to be about half in bonds, with your stocks being blue chips from the S&P 500, if not the Dow 30. Stocks: Proctor and Gamble (PG), Altria (MO).
Age 60-65: Wind down your working years by moving at least 90 percent into bonds. As a result, you can afford to get a little risky with the equity portion of your portfolio in hopes of realizing some outsized gains just before retirement. Stock picks: Ladish Company (LDSH), Cognizant Technology Solutions (CTSH).
Age 65+: Its not pleasant to think about, but if you're still looking for stocks at this age, chances are you did not properly save during your working years.
As a result, instead of being more conservative, you probably need to be even more aggressive. If you're trying for a big score, perhaps options or futures are your best best.
If choosing stocks, it is probably best to speculate on a takeover target. Stock picks: Mamma.com (MAMA), Salon.com (SALN.OB).
Stock Picks For the After-Life
If you save diligently and invest wisely, you may not be able to spend all of the money that your portfolio earns in your lifetime. In this case, why not give back? Invest your excess wealth in a charitable trust set up to give to the causes you believe in most. Stocks: Berkshire Hathaway (BRK-B), or if you're really successful, (BRK-A).
Both David Maillie & William Smith are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
David Maillie has sinced written about articles on various topics from Skin Care, Hair Styles and Wrinkles. David Maillie holds numerous patents including his recently awarded patent for headlight repair, cleaner and restorer. He can be reached at M.D. Wholesale: