Tag Archives: American International Group
Shallow dips, long climbs — the New Millennium stock market keeps
rocking on! I’m still looking for more of a pullback on Wall Street than we’ve seen so far this summer. But the evidence is clear: This market wants to go higher. Once we round the corner into the fourth quarter, it almost certainly will.
In this month’s visit, I’ll show you how to take advantage of the
remarkable opportunities this unsung�but extremely persistent�bull
market continues to offer us. Even with the Dow bouncing around near an
all-time high, I’m spotting plenty of bargain-priced stocks that should easily generate returns of 20%, 30% and more in the next 12�18 months.
It’s a great time, too, for income investors (especially retirees and folks contemplating retirement soon). One happy effect of the turmoil in the
bond market over the past few months is that cash yields on a wide range of income vehicles have surged. On p. 4, I’ll point you to several of my
favorites, with up-front yields as high as 8%�9% plus capital gains potential to boot. I’m shoveling these investments into my own pension fund as fast as I can, and I invite you to do the same.
Still hanging on! Stocks bounced back again this week, erasing all of last week’s losses and then some. In fact, the blue chip S&P 500 index finished today at its highest weekly close since September 2000.
In this month’s visit, I’ll show you how to reserve your seat for the ride up. Surprisingly, perhaps, some of tomorrow’s biggest winners
are likely to be stocks that most investors have heard of—but don’t happen to own. I’ll point you to three, in particular, that should
comfortably double your wealth over the next three to five years.
In this month’s visit, I’ll show you what kinds of stocks and funds are worth a bite. Hint: The safest investments today, with the best upside potential in an erratic market, are those that return large amounts of cash to you in short order. The cash may take various forms (a plump dividend, for example, or a large stock buyback). But if you’re serious about building wealth in 2006, your motto should be: “Let me see the money now.”
Even after the shocks of Hurricanes Katrina and Rita wear off and the holiday spirit takes over, investors will still have to grapple with the Federal Reserve’s increasingly hardheaded monetary policy. Until the rate hikes stop, it behooves us to play the game with extra care. For long-term investors like us, that means two things. First, we want to take advantage of the market’s occasional swoons to fill our shopping car with stocks that have been knocked down too far. One group that has been dented lately (despite excellent earnings prospects) is the oils. In this month’s visit, I’ve got a pair of oil stocks you can lock away for potential returns of 50%–80% over the next three or four years.
In this month’s visit, I’ll show you how Alan Greenspan is unwittingly setting the stage for a big rally in bond prices, starting soon. We’ve seen his hardheaded determination to tighten credit before—and we know the result. Some high-octane Treasury bonds, I predict, will roll up a total return of 15% or perhaps even 20% in the coming year.
On Wall Street, at least, it’s the same old story. Seasonal forces (the “summer siesta” I’ve talked about), coupled with record oil prices, have triggered a mild pullback in the stock market. But perky earnings reports from the June quarter keep luring buyers into selected stocks.
The stock market has just about fulfilled our expectations for the near term. As you know, I’ve been looking for the Standard & Poor’s 500 index to make a marginal new high (above the March 7 closing high of 1225) before the market settles into its traditional “summer siesta.”
Please don’t ever tell me the stock market is rational. Yes, it has its moments of calm, and intervals of lucidity. But craziness too often seems to be the rule, not the exception. We saw two vivid illustrations of the “crazy principle” in yesterday’s trading.
This month, I’ll show you how to make the smartest use of any further “down time” Mr. Market may grant us in the next few weeks. More and more bargains are turning up on my radar screen, including a brand-new name for us: one of the world’s largest and best-run management-consulting firms, now at a whopping 50% discount to my estimated share price three to four years out. Yet I’ll bet you’ve never heard of the stock. (There’s a curious reason why.)