Alan Farley: Go small
Alan Farley writes investing commentary for TheStreet and is publisher of "Hard Right Edge," a source of trading advice. He sees investing opportunities in small-cap stocks. Among his picks is Cepheid (CPHD, news), a Silicon Valley company focused on genetic diagnostics. Its tests automate the process of preparing and amplifying DNA to detect diseases.
The stock sold off, from $33 to $5, during the bear market but has since rebounded; it closed at an all-time high of $35.50 on Tuesday. The stock still has plenty of upside, said Farley, who foresees it surging past $50 a share.
MicroStrategy (MSTR, news) is another stock Farley favors. The McLean, Va., company provides software that lets customers sift through databases for sales trends, customer behaviors and other details that can be used in marketing, forecasting and fraud detection.
The stock is trading around a 10-year high, so investors should wait for it to pull back to $150 before buying, Farley recommended.
David Bach: Muni bonds beckon
"If you don't have a lot of debt and you're in a high tax bracket, I would recommend searching out municipal bonds," said David Bach, a former Morgan Stanley executive and regular contributor to the "Money 911" segment on NBC's "Today" show.
"I've been investing in closed-end muni bond funds since December, and the rate on my funds is 7% tax-free -- and the funds are up for the year, on average, and outperforming the stock market," Bach said.
"I'm (also) investing in exchange-traded funds that pay dividends. I like the iShares S&P U.S. Preferred Stock Index (PFF, news); it's currently yielding around 7%," said Bach, author of "Debt Free for Life: The Finish Rich Plan for Financial Freedom."
Jonathan Hoening: Test the downside
"Every investor and portfolio is unique, but, that being said, I've been shorting General Motors since March and expect the stock to trade even lower in the second half," said Hoenig, a former floor trader at the Chicago Board of Trade and a panelist on "Cashin' In" on the Fox News Channel.
"GM received a $50 billion bailout that left taxpayers as its largest shareholders. At its current price of about $30 a share, GM stock must rise about 75% for taxpayers to break even," Hoenig said. "But published reports suggest the government is unwilling to sell at a loss, instead opting to hold out until the stock at least rises to its IPO price, if not higher.
"This is the same irrational 'sunk cost' fallacy that kept investors holding on to Cisco Systems (CSCO, news) after buying it at $80 back in 1999. I just feel like the market isn't going to be so accommodating to the government and will instead test the downside on GM's price," Hoenig said.
Clark Howard: Buy investment property
The smartest move an investor can make is to buy investment real estate, said nationally syndicated consumer advocate Clark Howard.
"The tide has turned, and rental income is rising at the same time that the cost of owning real estate is at ultra-low levels," said Howard, author of "Clark Howard's Living Large in Lean Times."
"Cash buyers will be the big winners," Howard said. "Buyers are scarce, and the sellers are desperately creating the perfect buying opportunity."
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Fundamental change could turn America around. But, I doubt that anything else will. If we forced our public owned corporations to pay our minimum wages wherever they go, that would bring back jobs and show a little respect for workers. It would also help to have labor represented on corporate boards as Germany does.
If all government guaranteed loans were made directly for a low interest, home and student notes would be cut by half or more and trillions would be left in the hands of our people instead of thieving banks. Why should anyone pay a bank 600k for a 200k house when the tax payer backs the loan? Our capital gains tax where most giant money is made is only 15% and we give big banks with trillions in assets billions in 0% loans to play the market. Insane. unless you are a big banker or a wall street billionaire.
Is it written somewhere in blood that big corporations, banks and wall street should be helped to rape and destroy our country? Seems to me we are pursuing this insanity with a religious fervor.
Well, you know, among some of the less common accounts (not exactly in your typical high school textbook), was mention that FDR, who in actuality had at one time been a business partner for Hoover; was himself involved in front companies that helped profit off of the hyper-inflation from 1920s Germany. Some people certainly are adept at profiting of the hardships of others....
TBH, rather then all the focus on making the quick buck in the face of trajedy, I wish some would focus more on creating the future, and creating the better outlook, rather then trying to convince people by mere psychology that things are better then they are, or out finding a way to profit off misery. There certainly would be areas where the future could be helped by being created today, and of course the resourceful and innovative one's who do; well we've certainly seen a certain history in that regard. There is a reason of course, that the 20th century showed the growth it had, and it wasn't from people burying their heads in the sand and playing make believe, nor was it from everyone just passively sitting by waiting for things to get better.
Ultimately, if we want a better world, better economic prospects, or the like, it's not going to come about unless it's created. And simply speculating on the stock market, or pouring funny money into the brokerage firms (aka fiat currency printed with wild abandon) isn't going to bring about that sortof growth. The American "can-do" spirit, combined with a certain degree of euntepenurship on the part of many, had a lot more to do with some of the growth, and gains in the past; which in the face of this deep recssion, labor seems to be losing/having turned back at a rapid pace, then speculating on Wall Street or trading in the banking houses had. In those days, going back 50 years ago, 100 years ago, when the little people saw a need, they stepped in to fill it. They didn't see a job, they made a job; though of course they didn't have all the beuracratic red tape many people face today, in say Jersey for instance.
I don't think we can count on the fat cats to bail us out of this one, no matter how much they want the tax payer to bail them out of their own mistakes. We're going to have to bail ourselves out, not rely on the world bankers to do it for us, it seems....
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