If you’re like many investors, you are probably sitting on the sidelines right now, unsure of what to do. If you want to buy, you may be thinking “let’s wait a little longer.” If you want to sell, you might be concerned about “missing out.”
If you want a real look at what’s headed this way, ask Hideko Toyotomi.
Traveling as much as I do, I get to meet a lot of very interesting people. Like Wayne Shipp.
China’s slowdown does not signal an economic washout, says Keith Fitz-Gerald. Domestic consumption is still booming, and the government stimulus will support growth in the future. Over time, Keith says savvy investors could see the best payoffs in a generation.
Keith Fitz-Gerald says investors have the chance to profit from the contango phenomenon in oil markets. The implied higher future oil prices mean an opportunity to buy oil-related ETFs now at a bargain price. For a safer option, Keith picks two oil transportation companies that pay healthy dividends.
With the way stocks are being whipsawed, investors often ask me how to tell when the market is ready for a rebound. While there’s no way to ever be 100% certain, I usually just let history be my guide. And history has a very interesting story to tell right now.
This is the time of year in which many investors really start to study corporate earnings, jobless statistics and all sorts of other state data in an effort to divine what’s next for China. But I simply prefer to head for the Wan Chai Street Market in Hong Kong, or the Temple Street Night Market across the harbor in Kowloon, and check on hairy crab prices as we approach the Lunar New Year.
Judging from recent reports that JP Morgan Chase & Co. (JPM) Chief Executive Jamie Dimon and Citigroup Inc. (C) board member Robert W. Rubin will forgo bonuses this year, it appears that at least some U.S. executives are starting to change their habits, as we’ve long suggested they should.
For many investors, a low Price/Earnings (P/E) ratio is a sign of value. But don’t you bet on it – at least, not yet. According to Michael T. Darda, chief economist for MKM Partners LLC, analysts have overestimated earnings by an average of 30% to 35% in the last three recessions. For millions of investors who use low P/E ratios as a litmus test for selecting their investments, that’s going to be a rather unpleasant shock.
We shouldn’t get too attached to low gas prices, says Keith Fitz-Gerald. Crude oil prices will soar before long, making driving an expensive habit again. But Keith says savvy investors can ‘hedge’ against this rise by buying into these three oil and gas ETFs now.
