What kind of investor are you? If you don't know, you might have a problem. It's useful to have a handle on your investment strategy, so that you can better focus on it.
There are many different ways to categorize investing. For example, a Goldilocks-like approach might divide investing strategies into these groups:
Too-aggressive investing: This approach puts your dollars in danger. It can include any of a host of riskier-than-average types of investments, such as options, commodities, currency bets, penny stocks, and even lottery tickets. It's true that some options strategies can be conservative, but many are not, and it's very, very common for options to expire unexercised and worthless.Too-cautious investing: It might seem smart to be very conservative with your money, but if you do that, it might not grow enough to support you in retirement. That's especially true these days, in our environment of ultra-low interest rates. With inflation historically averaging about 3% annually in the U.S., even earning 2% in your bank account or via a bond or CD will leave you losing purchasing power over time.
Just-right investing: For many people, a long-term portfolio mixed with both stocks and bonds is a sound way to grow your net worth.
The bond world features many kinds of bonds, such as government bonds, municipal bonds, and corporate bonds. Government bonds, such as U.S. Treasury bills, bonds, and notes, are the safest, backed by the U.S. government. They pay interest that's taxable on your federal tax return, but is exempt from state and local taxes. Municipal bonds can be riskier, as some local governments are on somewhat shaky ground, but they can therefore offer higher interest rates and their interest is exempt not only from state and local taxes, but also from federal taxes. Corporate bonds are issued by companies that want to raise money. They, too, offer rates higher than government bonds, and their interest is not tax-exempt. In general, the higher their interest rate, the lower their credit rating and healthiness.
Stock investing approaches
A sound stock investment strategy is hard to beat, for long-term growth. Here's a quick rundown of some key approaches. Note that many investors engage in one or more of them -- they're not all mutually exclusive.
Top 10 Rising Companies For 2015: Agnico-Eagle Mines Limited(AEM)
Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.
Advisors' Opinion:- [By Holly LaFon]
He increased his holdings in gold companies in the fourth quarter accordingly. Gold stocks he found attractive in the fourth quarter are: Novagold Resources (NG), Randgold Resources (GOLD), Iamgold Corp. (IAG), Barrick Gold Corp. (ABX), Agnico Eagle (AEM) and International Tower Hill (THM).
10 Best Gold Stocks To Own For 2014: First Majestic Silver Corp.(AG)
First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.
Advisors' Opinion:- [By Laura Brodbeck]
Tuesday
Earnings Expected: Fossil Group (NASDAQ: FOSL), CST Brands (NYSE: CST), First Majestic Silver (NYSE: AG) Economic Releases Expected: US retail sales, US redbook, German ZEW economic sentiment, Chinese retail sales, Chinese industrial productionWednesday
- [By Zacks]
Originally posted here...
Most Popular Earnings Expectations For The Week Of July 14: Big Banks, Tech Giants And More GT Advanced Technologies Down Sharply On iPhone Production Concerns UPDATE: Barclays Upgrades Apple, Has High Expectations For Near Term Perrigo Rumored To Be On Block; 'Market Source' Sees 25% Premium 9 IPOs To Watch For This Week - [By Doug Ehrman]
It is no secret that precious metals companies have been taking a pounding for some time now. The SPDR Gold Trust (NYSEMKT: GLD ) and iShares Silver Trust (NYSEMKT: SLV ) , the gold and silver ETFs, have been hard hit and operating companies like First Majestic (NYSE: AG ) and Barrick Gold (NYSE: ABX ) have been hit even harder. Through all of these struggles, and in some cases because of them, one precious metals company continues to look attractive for the long term: Silver Wheaton (NYSE: SLW ) .
10 Best Gold Stocks To Own For 2014: NEW GOLD INC.(NGD)
New Gold Inc. engages in the acquisition, exploration, extraction, processing, and reclamation of mineral properties. The company primarily explore for gold, silver, and copper deposits. Its operating properties include the Mesquite gold mine in the United States; the Cerro San Pedro gold-silver mine in Mexico; and the Peak gold-copper mine in Australia. The company also has development projects, including the New Afton gold, silver, and copper project in Canada; and a 30% interest in the El Morro copper-gold project in Chile. The company was formerly known as DRC Resources Corporation and changed its name to New Gold Inc. in June 2005. New Gold Inc. was founded in 1980 and is headquartered in Vancouver, Canada.
Advisors' Opinion:- [By Ben Levisohn]
Bridges favorite stocks include Goldcorp, Newmont, Eldorado Gold (EGO) and New Gold (NGD).
Note, however, that these recommendations are all qualified in one way or another. Investors should keep that in mind before going all in on the gold miners.
- [By Ben Levisohn]
On an adjusted basis, Eldorado Gold (EGO) has the longest reserve/resource life amongst our coverage companies (39 years) with Goldcorp (GG) having the longest reserve/resource life (23 years) amongst the senior producers versus the group average of 22 years. Kinross Gold (KGC) and Iamgold (IAG) have the shortest adjusted reserve/resource lives amongst the senior and mid-tier producers (18 and 14 years respectively). On a percentage basis, the companies most affected by the adjustment are New Gold (NGD) and Iamgold which both saw reserve/resource lives fall by 47% however, we note that despite the adjustment,�New Gold still has the second longest reserve/resource life in our group (37 years). Newmont Mining was the least affected by the adjustments with reserve/resource life declining by only 12% to 22 years from 25 years.
- [By Ben Levisohn]
January is nearing an end, and that means one thing: Gold miners will start announcing earnings. New Gold (NGD) will get things started on Feb 6, followed by Kinross Gold (KGC) on Feb. 12 and Goldcorp (GG) and Barrick Gold (ABX) on Feb. 13.
10 Best Gold Stocks To Own For 2014: Golden Star Resources Ltd(GSS)
Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.
Advisors' Opinion:- [By Patricio Kehoe] some future and gave several reasons for my bearish stance towards the stock. A small market, high geopolitical risk in some of the countries the firm operates, along with overexpansion in times of fluctuating gold prices gave tune to the massive shedding of shares by investment gurus. Five months have past since I last considered Golden Star�� potential, and everything indicates the situation has not changed.
Guru Activity Shows a Clear Tendency
Steven Cohen (Trades, Portfolio), Chuck Royce (Trades, Portfolio) and Arnold Schneider (Trades, Portfolio), had already sold their entire holdings in the company by October 2013, indicating they had little faith in the gold miner�� recovery. By the end of the year, Jim Simons' (Trades, Portfolio) Renaissance Technologies took a similar decision, reducing its stake in the firm by 32%. This tendency towards the sale of Golden Star stock was duly noted by investors and analysts alike, and concurs with the company�� poor performance.
A Look at the Numbers
In an industry plagued by fluctuating metal prices, operating with lofty margins can be quite helpful. Yet Golden Star cannot afford such luxuries. With an operating margin of 0.1% and a net margin of -56.8% the firm is in a tight spot, especially when compared to the industry average. Unlike its industry peers��median, which are of 2.26% and -0.09%, respectively, the Toronto-based gold miner is struggling to generate decent cash flow levels. Further metrics depict a even worse situation for shareholders: return on equity is currently at -370% and revenue growth is estimated to reach a poor 2.5%. Purchasing overpriced assets, relative to current gold prices, is surely one of the reasons for such grim figures, as financial losses have taken their toll on Golden Star.
The announcement of its 2013 full year, and fourth quarter earnings only helped to add to shareholders��concerns. A 15% decline in revenue was expected by those
- [By Sean Williams]
Golden Star Resources (NYSEMKT: GSS )
It's simple physics: The bigger they are, the harder they fall. When gold prices nosedived earlier this week, gold miners with historically higher operating costs took the brunt of the hit. For the most part, that meant that development-stage miners, and those operating in Africa, where labor and political costs make cost-effective mining a challenge, took it on the chin. Possibly no stock was hammered more than Golden Star Resources, a gold miner in Ghana, which lost about one-quarter of its value on Monday alone. - [By Patricio Kehoe] ating price of the commodity, along with the geopolitical risks involved in mining in African nations such as Ghana, are just two of the obstacles the firm is facing. In addition, as one of the smallest gold mining firms in the industry, with a market cap of just $122 million, Golden Star has had a very difficult time financing its latest expansion projects. With share prices tumbling towards all-time lows, gurus such as Steven Cohen, Chuck Royce and Arnold Schneider have already sold out their positions in the troubled firm.
Why Have Gurus Lost Faith in Golden Star?
Despite aggressive expansion over the past decade, the Toronto-based gold mining firm has not been able to take advantage of its increased production output. Gold prices might have exploded over a ten-year period, yet the recent six-month decline has put a huge strain on Golden Star. The expedited maturation of its mines is particularly troubling, since the accelerated extraction rates, which allowed for short-term profits, are now falling considerably. The impact of the company�� excessive overproduction on profits and growth is clear: decreasing gold reserves mean less production, and thus reduced revenue for the gold miner. When the decline in metal prices are taken into account, the outlook is even more grim.
In addition to overexpansion at the wrong time, Golden Star�� position has weakened due to its comparably less efficient operations. Unlike industry peers, such as IamGold Corp. (IAG) or Gold Fields Ltd. (GFI), the majority of the Toronto-based miner�� assets contain refractory ore, which is far more expensive to extract than non refractory ore. And, in an attempt to switch production to the lower cost gold ore, and thus increase margins, Golden Star has depleted its mines��non refractory ore. With low reserves and mounting cash costs, the firm inevitably turned to new acquisitions.
Overpriced Acquisitions and Geopolitical Risk
The purchase
10 Best Gold Stocks To Own For 2014: Iamgold Corporation(IAG)
IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.
Advisors' Opinion:- [By Dan Caplinger]
Elsewhere, losers were few and far between, but many gold stocks remained under pressure as the yellow metal only managed a modest bounce after yesterday's plunge. In particular, major producer Barrick Gold (NYSE: ABX ) and gold miner IAMGOLD (NYSE: IAG ) fell between 4% and 5%. Both companies were on the list of holdings of billionaire hedge fund investor John Paulson's gold fund as of Dec. 31, and with rumors circulating that Paulson may have to liquidate positions to handle coming redemption requests, the stocks that he reportedly owns could see further selling pressure even if gold bullion prices rise.
- [By Ben Levisohn]
On an adjusted basis, Eldorado Gold (EGO) has the longest reserve/resource life amongst our coverage companies (39 years) with Goldcorp (GG) having the longest reserve/resource life (23 years) amongst the senior producers versus the group average of 22 years. Kinross Gold (KGC) and Iamgold (IAG) have the shortest adjusted reserve/resource lives amongst the senior and mid-tier producers (18 and 14 years respectively). On a percentage basis, the companies most affected by the adjustment are New Gold (NGD) and Iamgold which both saw reserve/resource lives fall by 47% however, we note that despite the adjustment,�New Gold still has the second longest reserve/resource life in our group (37 years). Newmont Mining was the least affected by the adjustments with reserve/resource life declining by only 12% to 22 years from 25 years.
- [By Rich Duprey]
IAMGOLD (NYSE: IAG ) still has an interest in the�Quimsacocha gold mine it sold to INV Metals last year, which has an indicated mineral resource estimated at 3.3 million ounces gold. China's�Ecuacorriente is also pursing a major copper project at Panantza-San Carlos, and International Minerals will seek out gold and silver at Rio Blanco.
10 Best Gold Stocks To Own For 2014: Goldcorp Incorporated(GG)
Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.
Advisors' Opinion:- [By Doug Ehrman]
The end of last week saw a trifecta of bad news for gold miners, even as the SPDR Gold Trust (NYSEMKT: GLD ) showed a measure of strength. Randgold (NASDAQ: GOLD ) saw earnings weakness, Gold Fields (NYSE: GFI ) was downgraded, and Goldcorp (NYSE: GG ) missed earnings estimates significantly. The interplay between the gold commodity and the gold miners has been particularly interesting of late, making this a good time to consider gold mining stocks and their prospects moving forward.
- [By DailyFinance Staff]
Stocks took a breather Thursday after racing higher on Wednesday, and the price of gold sank to a three-year low. The major averages ended mixed -- and that's good news, as the market mostly held onto the huge gains that followed the Federal Reserve's taper announcement. The Dow Jones industrial average (^DJI) edged up 11 points, the Standard & Poor's 500 index (^GPSC) slipped a point, and the Nasdaq composite index (^IXIC) fell 12 points. But the price of gold slumped by $39 an ounce, closing below $1,200 for the first time in more than three years. Gold related stocks followed suit. Newmont Mining (NEM), Barrick Gold (ABX) and Goldcorp (GG) all fell about 1.5 percent. Another story getting lots of play today is Target's (TGT) announcement that as many as 40 million credit and debit card customers may have had their account information stolen over the past few weeks. Target shares fell 2 percent. Even though earnings season is still a few weeks away, earnings news was a big factor today. On the upside: Oracle (ORCL), up 6 percent. The software maker beat Wall Street profit and revenue estimates. Food giant ConAgra (CAG), up 5 percent, after topping expectations. And Pier 1 (PIR), also up 5 percent. Net slightly missed, but the retailer raised its dividend by 20 percent.
- [By Hebba Investments]
Therefore the situation is still very bullish for investors in physical gold and the gold ETFs (GLD, CEF, and PHYS). Investors interested in leveraging this situation into higher potential profits may also consider buying gold miners such as Randgold (GOLD), Goldcorp (GG), Yamana Gold (AUY), and any of the other gold miners. Finally, those willing to shoulder much larger risks may consider some of the exploration and micro-cap companies that offer significant profits at a high risk such as Chesapeake Gold (CHPGF.PK), Pretium Resources (PVG), Western Copper (WRN), or any other of the junior exploration companies. Though investors should keep in mind that gold mining companies and explorers do not always rise with a rising gold price - do your research before you invest in the miners.
10 Best Gold Stocks To Own For 2014: CME Group Inc.(CME)
CME Group Inc. operates the CME, CBOT, NYMEX, and COMEX regulatory exchanges worldwide. The company provides a range of products available across various asset classes, including futures and options on interest rates, equity indexes, energy, agricultural commodities, metals, foreign exchange, weather, and real estate. It offers various products that provide a means of hedging, speculation, and asset allocation relating to the risks associated with interest rate sensitive instruments, equity ownership, changes in the value of foreign currency, credit risk, and changes in the prices of commodities. CME Group owns and operates clearing house, CME Clearing, which provides clearing and settlement services for exchange-traded contracts and counter derivatives transactions; and also engages in real estate operations. Its primary trade execution facilities consist of its CME Globex electronic trading platform and open outcry trading floors, as well as privately negotiated transact ions that are cleared and settled through its clearing house. In addition, the company offers market data services comprising live quotes, delayed quotes, market reports, and historical data services, as well as involves in index services business. CME Group?s customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, and governments. It has strategic partnerships with BM&FBOVESPA S.A., Bursa Malaysia Derivatives, Singapore Exchange Limited, Green Exchange, Dubai Mercantile Exchange, Johannesburg Stock Exchange, and Bolsa Mexicana de Valores, S.A.B. de C.V., as well as joint venture agreement with Dow Jones & Company. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group was founded in 1898 and is headquartered in Chicago, Illinois.
Advisors' Opinion:- [By Holly LaFon]
We re-established an investment in CME Group, Inc. (CME) during the period. CME is the largest and most diversified derivatives marketplace in the U.S. Its exchanges support trading across a variety of asset classes, including interest rates, equity indexes, energy, agricultural commodities, foreign exchange and metals. We believe CME has the opportunity to significantly accelerate its growth rates due to the eventual normalization of interest rates and the attendant interest rate volatility. CME's interest rate trading volumes (ADV) have been depressed as a result of the Fed's zero interest rate policy and low interest rate volatility. For example, interest rate ADV was 4.8 million in 2012compared to 7.1 million in 2007, before the financial crisis. However, given the Fed's recent policy statements (discussed above), market participants are starting to anticipate an end to quantitative easing (QE). On May 30, CME experienced record volume for interest rate derivatives with ADV of 19.4 million. With the globalization of CME's business, a host of new products, and the regulatory requirement for interest rate swaps to be cleared on an exchange, we believe CME's interest rate volumes can surpass their prior peak, significantly driving earnings growth for the company.
- [By Sean Williams]
Shares of future exchange operator CME Group (NASDAQ: CME ) advanced 1.5% after being mentioned favorably on CNBC by commentator Simon Baker. While I normally would recommend paying little attention to the opinions of analysts, today's move could have more to do with the increasing volatility, given the move lower, which is very likely to increase futures contract volume. Sometimes, the worst of times brings about the best business for CME Group, and we could be seeing signs of that with today's big move higher.
- [By Russ Krull]
CME Group (NASDAQ: CME ) made a market for its own debt, selling $750 million of 5.3% 30-year paper. The money will be used to redeem $750 million of 5.75% paper maturing next February. The refi will save CME a little more than $3 million per year in debt service.
- [By Mark Thompson]
The Chicago Mercantile Exchange (CME), which operates the world's biggest derivatives market, is asking investors to stump up more cash to trade in financial products that provide protection against rising interest rates.
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