In addition, the U.S. Federal Reserve's decision to taper or not remains at the forefront of investors' minds. Friday's August jobs report might provide more clarity on the central's bank next move, which will be shared - or again teased - at the Sept. 17-18 Federal Open Market Committee (FOMC) meeting.
best stocks to buy in 2013
- Best Stocks to Buy Now: A Money Morning Weekly Roundup
- The Best Stocks to Buy: A Money Morning Weekly Wrap-Up
- Best Stocks to Buy Now: A Weekly Round-up from Money Morning
- Three Stocks to Buy Now to Pocket "Insider" Profits
- Eisman: Best Housing Stocks to Buy in 2013
- Stocks to Buy in 2013 Using the "Best Six Months Strategy'
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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.
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It was a rocky week for markets- but if you know the best stocks to buy now, your portfolio is in good shape...
Last week, the Dow lost 2.23%, or 344 points, to finish at 15,081.47, and the Standard & Poor's 500 fell 2.1% to 1,655.38.
You can find some of the best stocks to buy now by tracking where insiders are placing bets. We’ve got 3 hitting our “insider buying” radar... Read more...
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In New York City last week investors from around the country gathered for the Ira Sohn Conference to pitch their lists of the best stocks to buy in 2013.
One of the more interesting presentations this year featured Steve Eisman of Emrys Partners, who gave a presentation that was very bullish on the prospects for the U.S. housing market.
While many investors have proffered opinions of the strength and validity of housing market performance, investors should pay especially close attention to Eisman when he speaks on the subject.
Eisman has shown he knows how to evaluate and profit from this market. He successfully profited from the market top in 2007.
Eisman was featured in Michael Lewis' book on subprime mortgages, "The Big Short," as one of the investors who made huge bets against the housing market at the top of the bubble and raked in billions of profits.
Now, he's picking the bottom. If he's right again, the profits could be just as large on the upside as they were during the collapse.
In his Ira Sohn presentation, Eisman pointed out that monthly payments as a percentage of income for mortgages is at an all-time low of just 14% and inventories of available homes are at a multi-year low. He thinks the growth is just beginning, and aided by very low interest rates we could see strong growth in the industry for several years.
He listed several of the best housing stocks to buy that would allow investors to profit from this continued recovery.
He favors home builders that have substantial land inventory as we go into the recovery. Those builders who have built up their land holdings over the past couple of year should amass substantial profits form reselling land purchased on the cheap.
Here are three housing stocks to buy in 2013, according to Eisman, including what he calls the "most powerful" play in the sector this year.
It's called the "best six months strategy." Simply put, the markets -- and the Dow Jones Industrial Average in particular -- perform much better in the November-April period than the May-October period.
The May-October slump, in fact, gave rise to the old investing axiom, "sell in May and go away."
But most investors don't realize they can use the consistency of the pattern, and its oscillating nature, as an investing strategy.
"We've found that most of the market's gains are made from November to April, whereas you either go down or are flat from May through October," Jeff Hirsch, editor-in-chief of the Stock Trader's Almanac, said in an interview on Breakout.
The historic discrepancy is larger than one might think. Stock Trader's Almanac analyzed the performance of the Dow Jones from 1950 through 2011 and found that the November-April period showed an average increase of 7.5%, compared to a meager 0.4% average gain for the May-October period.
"It's a pretty robust strategy," Hirsch said. "It's worked over the years. It's one of the most consistent things we've seen."
Still, the best-six month strategy is not as easy as simply selling on May 1 and buying on Nov. 1. Investors need to keep an eye on macro events and use technical indicators for the best times to get in and out. In some years, Hirsch said, it's better to re-enter the market in October.