Jun 17, 2012

Where to invest?


The uncertainty in financial markets, tightening the noose around the neck of the European economy, a hard landing in Asia - all this is a very negative effect on investors around the world.

However, the Bank of America Merrill Lynch assured - there is no one way to not only protect their savings, but also a good idea to cash in the current turmoil in world markets. The experts of the company, not hiding, they say that this summer will be some very real opportunities for investment. The main thing - do not miss the sight of them, and properly dispose of this knowledge.

A. U.S. housing market may return

Analysts said Bank of America, mortgage-backed securities in recent years become an increasingly popular investment vehicle for investors. It is hoped that in the fall of the U.S. Federal Reserve could start another round of monetary stimulus, which will have an additional incentive for the development of the market. Thus, we can expect similar growth in the value of investment assets.

Two. Stocks with the growing size of dividend

Another marketing tool, which is worth paying attention - it shares with the growing size of dividends paid. They are, by and large, can be ranked as yet undervalued assets. Such primary financial instruments are cheaper in comparison with stocks that pay high dividends is established. Experts BofA is not without reason, indicate that as soon as the payment may increase, and after them will be pulled and the income of the investor. It is also noted that such shares is less responsive to rising interest rates.

Three. Follow desheveyuschy assets in Europe

At Bank of America warned traders from being able to invest in European securities, albeit fairly depreciating under the pressure of the crisis erupted. As experts of the financial corporation, the recession in Europe has not ended, which means that financial assets will continue to be adjusted.

However, in this situation it is important not to miss the beginning of a growing trend. At BofA sure that when the markets will rally, will be particularly attractive to use paper banks, showing the strongest growth rates.

4. Do not be afraid to bet on gold

Not any commodity, especially among the metals, demonstrated over the past 12 months, more volatile than gold. Last year, he literally hammered investors from around the world in the hope of the protective properties of the yellow metal. Price per ounce reached for up to $ 1920, but the subsequent crash left no stone unturned in the status of the asset-seekers. At the beginning of the year again saw an increase was reversed. In mid-June gold traded at $ 1620, and many are wondering - what will happen next?

At Bank of America to answer this question clearly - will continue to grow. Monetary easing by the central bank will increase gold prices. According to statistics, over periods of QE1 and QE2 prices increased on average by 20%. So there is now reason to expect a return on investment.

Five. Do not be afraid to invest in U.S. technology sector

Papers of high-tech U.S. companies are currently traded at a discount relative to the broad market index S & P 500. This situation is not typical for the exchange and, in fact, observed for the first time since 1996, Against this background, there is room for dividend growth, a wave of share repurchases and increased investments by industry representatives, which will have a stimulating effect on the quotes of companies. In addition, BofA indicate that the financial results this year are smoother than in previous periods.

6. Corporate debt will be the price

Recently, credit spreads on debt securities increased significantly, creating a point to enter the market. Yields on corporate bonds around the world demonstrates the growing trend and exceeds the corresponding figure of sovereign bonds by 99 percentage points In addition, high-quality bonds had now been clearly overweight.

7. Pay attention to the emerging markets of Asia

Analysts at Bank of America believes that emerging markets in Asia and Latin America will be able to survive the European debt crisis. However, according to BofA, the growth of the Asian market this year amounted to about 6.8%, which could double the corresponding figure of Latin American market. In Asia, according to American bankers, there are a healthy banking system, as well as lower inflation pressures in the economy. And in conjunction with the projected stimulus programs in China, the growth may be even stronger.

Eight. Look for developed companies in emerging markets

According to experts BofA, growth companies in emerging markets is currently very overpriced. On the other hand, companies in developed economies, hosted in emerging markets, by contrast, show growth of quotations. And the bet is to do more and that
 
real consumption growth in emerging markets grew on average by 7% from 2007

9. By investing in the retail stores choose a fixed-price

As experts believe, the category of retail stores offering goods at a fixed price will rise regardless of the pace of U.S. economic recovery. We can expect business growth by 6-7% on an annualized basis, and of particular importance when choosing an investment objective is to give a growing share of sales of tobacco products and alcoholic beverages.

10. Insure their deposits with the mind

Now there is a situation in which the correlation between different asset classes has reached its maximum value over the years. Growing uncertainty and fears of large-scale crisis should encourage investors to diversify their asset portfolio.

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