Jim Rogers thinks central banks have created a nightmare for investors. Here are what he considers the best investments so you don’t get burned. Stick with what you know will work...
With fears of a market sell-off growing, you can survive a downturn if you know the best investments to make now.
For example, one way savvy investors navigate through volatile markets is by buying inverse funds.
Inverse funds enable you to make money when markets fall, while lowering your risk and protecting the value of your investments in the long run by smoothing out volatility.
A year ago, I asked each of our experts here at Money Map Press to recommend their best investment ideas for the 12 months to come.
Of the five stocks our experts recommended in "The Five Stocks You Have to Own in 2012," two more than doubled in price. And the biggest winner posted a peak gain of 153%.
A year later, here we are with a fresh set of recommendations for 2013. I talked to each of our in-house gurus - including Chief Investment Strategist Keith Fitz-Gerald, gold-and-natural-resources expert Peter Krauth, high-tech maven Michael A. Robinson - and asked each for their single-best investment idea for the rest of this year.
Take a look...
With low growth forecast in the United States, some investors have headed beyond U.S. borders in search of the best investments for 2013 - and landed in Latin America.
Latin America's largest economies, like Brazil, aren't the ones that will be delivering the biggest stock gains this year. As measured by the iShares MSCI Brazil Index Fund (NYSE: EWZ), equities in the region's largest economy are extending last year's glum pace as the exchange-traded fund (ETF) is off nearly 2% to start the year.
But while economies like Brazil and Argentina might not offer the best investments for 2013, there are some "unsung gems" that will deliver.
Here are some of the most promising Latin American names, both on the equity and debt fronts, that investors should consider this year.
Japanese Prime Minister Abe's recent success in talking the yen lower against other currencies has increased fears over "currency wars." Now investors are on the hunt for the best investments to profit from central bankers' "race to the bottom" in 2013.
As we've pointed out, the Japanese have done nothing overt to weaken the yen - yet. Markets were massively long the Japanese currency and, when Prime Minister Abe called for "unlimited easing" during the election campaign last year and in the run-up to selecting a new Bank of Japan governor, that was all traders needed to hear to begin selling their yen long bets and taking out short positions.
Abe's great success was in getting the market to do all of the heavy lifting for him.
In fact, Abe has been a little too successful. Minister of Finance Taro Aso told reporters in Tokyo on Friday that the yen had weakened too quickly, which prompted an immediate reversal in the currency markets.
Aso's comments came after remarks by European Central Bank President Mario Draghi Thursday raising concerns that the recent strength of the euro might derail the recovery just gathering momentum in Europe now.
Looking at the interplay of comments from Draghi and Aso last week, it is tempting to think that all of this commotion in the currency markets is being coordinated at the highest level of central banking.
But, with the exception of China, which has been quietly pushing the renminbi toward the lower end of its trading range, no one has done anything. It's all just talk.
In the financial markets, however, talk is a big industry. Talk gets people to put on trades and that is how bankers and brokers make money.
This leaves investors wondering the best currencies to invest in to profit from these fluctuating values, which is why Morgan Stanley developed a currency war basket trade.