Daily Investment Tips

If you read the news in 2011, most headlines was about how bad things were for investors, falling stock markets and European debt crisis. But the true is even in this crisis there were areas where investors made money. Investors who bought Junk bonds of companies such as Ford saw good returns, some stocks even out performed the market in 2011 (check this video of best performing stocks in 2011). The lesson here is, if you look at individual stocks you are likely to find value and opportunities.

Best Opportunities to Invest your Money In 2012

Facebook IPO in 2012

You can’t talk of investment opportunities in 2012 without mentioning Facebook. 2012 is the year this social network will go public. I have big feeling Facebook is another Google: it will keep getting bigger and bigger. Other tech IPOs in 2011, Linkend and Groupon, opened high on first day but came to down later. The only people who made money were the early investors and the few who were lucky to buy the IPO.

Buying Short Term Bonds

As rates go up, the value of bonds that have long dated maturities go down, sometimes significantly. For that reason, stick with short term bonds (both government and corporate), Inflation Linked Bonds (TIPs) and Floating Rate Notes. Once rates go up — and they have nowhere to go but up — gradually change those holdings into longer term bonds.

Buying Under Water Properties

There are millions of mortgages across US that are under water, the value of this properties have fallen low and the return on investment is now high. If you have enough cash and you buy this properties, you can get a good return renting out the properties.

Investing In Companies Catering in Luxury Goods

2011 was the year the middle class disappeared. Companies that target the upper end of the market have continued to do well. Stats indicate the number of super rich people has gone up, these group continues to spend on luxury cars, boats etc. Companies like Lululemon Athletica (targeting Yoga lovers) have continued to see year-over-year earnings growth at or above 50%.

Investing in Low End companies

As the middle class disappears, the majority of these people are finding themselves in the lower end. As numbers of low income people continue to swell, discount retailers such as Wal Mart will continue to do well.

To find best opportunities to invest your Money In 2012 you need to look at individual stocks and not the whole market.

written by Constantine Njeru \\ tags: Athletica, Best Investments, Best Performing Stocks, Cars Boats, Debt Crisis, Facebook, Google, Inflation Linked Bonds, investing 2012, investment 2012, Investment Opportunities, Ipo, Junk Bonds, Linkend, Luxury Cars, Luxury Goods, Maturities, Middle Class, opportunities 2012, Return On Investment, Stock Markets, Term Bonds