The Best Stocks to Buy: A Money Morning Weekly Wrap-Up
By Diane Alter, Contributing Writer, Money Morning•
Some investors think Wall Street chaos is a sign to bail on stocks, not to load up on the best stocks to buy when things go south...
These are the investors who left the markets last week amid the latest antics: the Goldman Sachs trading glitch; minutes from the U.S. Federal Reserve's July meeting, which sent stocks on a rollercoaster ride; and the three-hour Nasdaq shutdown.
The truth is that leaving the markets means leaving all profit opportunity behind.
Markets have been volatile as investors brace for the Fed QE tapering. While equities have handsomely rewarded year to date, and more gains are expected, some analysts see an inevitable correction in the near future. With that in mind, Money Morning Capital Wave Strategist Shah Gilani - also called "the Reluctant Bull" - said he's keeping a close eye on what's developing and shares with readers how to invest in a down market.
In August, investors already have yanked $20 billion from bond funds, and outflows will hit $500 billion by the end of the year. It's all part of the Fed taper fear consuming investors. That means there's a new way to play bonds for big gains - and investors should act now. Money Morning Chief Investment Strategist Keith Fitz-Gerald shares some of the best moves readers can make in the bond market and why they can't wait.
Gold gained 2% last week, ending at an 11-week high. We've been advising readers for weeks that a fresh gold run was approaching, even though it's been a tough year for gold investors. The yellow metal is off a painful 17% since January. But gold bugs will love this chartMoney Morning found that suggests a strong rally is under way for the precious metal. Money Morning Global Resource Specialist Peter Krauth's take on the chart: "After $1,350, the next intermediate target is around $1,420. Beyond that level, I agree that around $1,480 is the following target. But the biggest prize will be $1,550, which also acted as support from mid-February all the way to mid-April."
If you think it's been difficult being a gold bug this year, silver investors will attest it's been worse for white-metal traders. Silver is down 27% since January. However, the metal recently enjoyed its best week since 2011 (a 14.3% gain), outpacing solid gold rallies. The big question now is what's next for silver. Money Morning delves into silver prices and tells readers what to expect for the rest of 2013...
Tech is trading at a much steeper discount to the overall market than it historically has, according to Bank of America, which makes for a great buying opportunity in the sector. As MoneyMorning Defense & Tech Specialist Michael Robinson explains, the road to wealth is not paved with good intentions and hope; it's paved with tech. And Robinson has found the next path to that wealth: Big Data. In fact, one segment of the Big Data industry is projected to grow 63,000% by 2017 and create $7 trillion in new wealth, if you know the right stocks to buy...
Natural gases prices climbed to a four-week high last week after government data showed a smaller-than-expected increase in storage, suggesting a pickup in demand. We found plenty to like in the oil and natural gas sector:
Finding oil is like striking gold, but extracting oil from a drill site is an intricate process. Without a rig, an oil well is nothing more than an "X" marks the spot. Money Morning Global Energy Strategist Dr. Kent Moors says the rig market is heating up again thanks to the shale boom. In How to Invest in Companies That Keep the OilBoom Humming, Moors details why the oil field services (OFS) business always improves before the fortunes of production companies. Figuring out which OFS stocks to buy can be tough - but not with Moors' analysis.
The key technology behind the U.S. natural gas boom is hydraulic fracturing. While fracking dates back to the 19th century, the greatest progress has been made in the last 30 years. Fracking has unlocked shale gas resources and provided 40% of total U.S. production in 2012. The gas boom is so big, it's morphed into a glut. Now the United States is prepping to export liquefied natural gas (LNG) - which brings us to these best stocks to buy to play a booming development in U.S. LNG exporting (hint: It's not Cheniere Energy)...