If you’re considering investing money in stocks or mutual funds in 2007, domestic, international and growth stocks are worth looking into. No matter how or where you want to invest, make sure you research the stock market, investment companies and both domestic and foreign investment projections. The same goes if you’re looking to diversify or increase your portfolio holdings. Whether you have a lot or a little money to invest, the year 2007 offers some prime opportunities to investors of all levels. While U.S. economy projections remain uncertain, foreign investments can bolster your portfolio.
Long-term bonds continue to offer dismal yields for investors, but you can fight back by researching your options and choosing wisely. While the future of the upcoming presidential election year causes some trepidation and uncertainty for investors, stocks can usually be relied upon as a solid investment. As the economy slows down, investors gravitate to stable and safer investments, including consumer staples from PepsiCo and Sysco, among others. Health care is a constant need for consumers, and medical equipment and suppliers such as Medtronic and Johnson amp; Johnson continue to hold their own. Military defense suppliers such as General Dynamics, United Technologies and Lockheed Martin also offer solid investments. Computer hardware and software companies expect to continue to see growth in 2007, as well as companies that sell products or services overseas.
According to Lipper, Inc., international mutual funds are a safe bet for ’07. In 2006, international funds gained an average of nearly 30% while U.S. diversified funds gained roughly 13%. But where to invest globally? Funds invested in China averaged roughly a 50% increase, while Latin America followed with 40% and Europe with 30% increases.
While the international markets offer great potential, they also suffer higher risks. If you’re unwilling to invest directly into a foreign entity, try U.S. companies that offer a strong presence overseas. A portfolio manager at Janis states that Brazil, India and China will be important markets in 2007, but suggests that investors seek multi-year gains when investing. A residential property developer in China, China Overseas Land amp; Investment Ltd., is a leading investment.
Latin America may see a reduction of interest rates in 2007, making it a prime location for foreign investments. Housing demand is up there, as it is in India. India’s growing demand for improved roads, airports and shipping ports makes Tata Steel, Ltd., one of its largest holdings.
According to Kiplinger, 20% of your portfolio should be in foreign entities, among them Nestle, Novartis and Diageo. They also rate that two of the best international funds belong to:
Dodge amp; Cox International Stock (DODFX). Though new, this stock, created in 2001, has earned in the upper 40% of broad-based foreign funds.
Artisan International (ARTIX). This decade-old stock favors growth companies.
Domestic Stock Wish List for 2007
Kiplinger has rated a few of their top picks for stock investments in 2007. Among them are:
Arch Coal (ACI) –
The second biggest coal producer in the U.S. Utility companies’ intention to add roughly 30% to coal-fired electricity capability should help increase this company stock. Forecast predicts the stock will increase 60% from last year.
Cisco Systems (CSCO) –
This technology stock is holding steady and is involved in systems supply. This is a safe investment.
American International Group (AIG) –
AIG has gotten beyond recent scandals and is ready to move forward. Her life insurance and consumer credit businesses are going well, both at home and abroad.
AT T; (T) –
The new, improved AT T; is back with a punch and is attracting investors with yields of 4.0%. Analysts are projecting at least a 10% increase for 2007.
3M (MMM) –
This company is a favorite among consumers, though investors haven’t been that enthusiastic until recently.
Johnson amp; Johnson (JNJ) –
Another safe stock, and may increase revenue with the development of several new drugs being developed in their labs. A supplier for medical devices, this company offers a solid investment opportunity.
Annaly Capital Management (NLY) –
This real estate investment trust utilizes gains from sales of their stock and borrows to buy mortgage-backed securities.
Textron (TXT) –
Textron’s top business endeavor, building Cessna airplanes, has almost more business than it can handle. Their Bell Helicopter division is also swamped with orders. Their earnings in 2006 are anticipated to have climbed over 40% since ’05 and they expect additional profits of almost 20% in ’07.
Growth Stocks in Action for ’07
Investment companies urge investors to put their money into growth stocks in 2007, such as Marisco Growth (MGRIX) and T. Rowe Price Growth Stock (PRGFX). Suggestions also include Vanguard PrimecapCore (VPCCX) and T. Rowe Price Equity Income (PRFDX). Research and compare these opportunities.
Another safe bet is Vice fund (VICEX), which includes gaming, defense, tobacco and liquor products and suppliers.
You may also want to invest your money by Haus Kaufen Krefeld. In this way, you will be able to grow your money in a safe and risk free way. Real estate investment is always one of the best platforms to invest in.
No matter how much or how little money you have to invest, research and weigh your options. Whether seeking the advice of an investment firm or going it alone, remember that it’s your money. Invest wisely.