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Last week's best stocks to buy and investments to make centered on Week 2 of the government shutdown, the Oct. 17 debt ceiling deadline, and third-quarter earnings.
The U.S. Federal Reserve was also in the spotlight, and Twitter took center stage once again as we learned of the micro-blogging site's target IPO date.
The Dow logged its second-biggest one-day gain (322 points) of the year on Thursday and added another 111 points Friday, in spite of Washington's woes.
But don't be fooled – other markets, such as bonds and derivatives, have been bracing for a default. Smart investors can't afford to be complacent.
Thankfully, Money Morning provides key moves to make amid mounting uncertainties. Here's a recap of last week's best stocks to buy:
- The biggest question flooding the Money Morning inbox involves how to invest before the QE taper. Our response was especially timely, as it followed the release of the minutes from the Fed's last policy meeting and the nomination of Janet Yellen as Fed Chairman Ben Bernanke's successor. Money Morning Chief Investment Strategist Keith Fitz-Gerald discussed with CNBC World News what Yellen will be like as the next Fed chief. We also highlighted some need-to-know Yellen facts.
- Fitz-Gerald says one of the most frequently asked questions he hears is "What's the simplest strategy to boost my returns?" In short, the answer is "rebalancing." Rebalancing is the periodic adjustment of an investment portfolio to coincide with changing market conditions. This maneuver can be done easily by any investor, and it should be done regularly. Fitz-Gerald explains it all and more in One 10-Minute Trick That Beat the Market by 248%.
- Warren Buffett typically steers clear of the technology sector, preferring instead companies that trade close to or even below "breakup value." But some name-brand tech firms have sufficient cash reserves to offset a decent portion of their share price. In If Buffet Liked Tech, Here's What He'd Buy, Money Morning Defense & Tech Specialist Michael Robinson lists three "Cash is King" tech firms that offer investors a nice margin of safety – and a chance at big gains.