I wrote an article on December 24th, 2013 about how Annaly’s price seemed to be at a bottom.(Read Article) While other authors on this site were suggesting to run for the hills, I hope you heeded my advice and put at least some money to work on NLY. Investors who did have benefitted from a 13%+ return since then, including dividends paid. Whether or not Annaly can continue its positive performance is the subject of another article I am working on. But in the meantime, I think its interesting that the Annaly logo is the family crest and reads, “Prodesse Non Nocere”, which means “proceed without fear”. I wanted to provide some additional insight into mortgage REITs as an asset class so that investors can invest in them intelligently, without fear, and without having to read from those that try to instill fear.
The forecasts for emerging markets in 2014 don’t get much better either. Based on variety of factors that may (KEYWORD: (MAY)) affect emerging market equities, the consensus forecast is for emerging markets to underperform developed markets again. Only one of the research providers shown below has an overweight to emerging markets. The rest of them are either underweight or neutral. Developed market equities and European equities are the clear favorites.
But lumping all emerging markets together leaves out the fact that there are certain global economic trends that may actually benefit specific countries in the emerging market space. Identifying and investing in those markets will be the key to emerging market success.
Greed is good. Some of you might remember the phrase being said by Gordon Gekko, the Wall Street villain played by Michael Douglas in the 1987 film, “Wall Street.” The actual phrase was much longer:
Greed, for lack of a better word, is good. Greed is right. Greed works. Greed clarifies, cuts through, and captures, the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge, has marked the upward surge of mankind and greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the U.S.A.
Warren Buffett, another well-known, but less fictional character has another quote along those lines:
Be fearful when others are greedy and greedy when others are fearful.
Investors have been fearful of interest rate rises and have dumped REITs. We think it’s a good time to be greedy.
As the old saying goes, when it comes to real estate, the three most important factors are location, location, location. In other words, a property’s location is so important to the value of the property that everything else barely matters.
When it comes to hotel REITs, however, it is apparent to us that there are certainly other very important factors, including customer service, hotel management partners, the spending capacity of your target market, and the ability to execute the implementation of its operating strategy. Based on location and these additional factors, Host Hotels & Resorts, Inc. (HST) seems to be well positioned to take advantage of this market environment by owning properties in areas of high demand, partnering with premier hotel operators, and targeting a segment of the consumer market with high levels of disposable income. It’s an investment that is as sound as the sleep you will attain by staying at one of its hotels.
We’ve all heard the saying that money doesn’t grow on trees. The meaning of the phrase is simple. A tree can be planted and with proper treatment (watering, sunshine, etc.) can eventually become self-sustaining. It takes little effort on our part for the tree to continue to grow and blossom. Money on the other hand, requires a greater amount of continuous effort in order for us to reap the benefits that it provides.
Not exactly, as we wrote back in September 2012 (Read Article), money does grow on trees for the owners of valuable forest lands whose trees are used to make everything from lumber boards to diapers. An investment in Weyerhaeuser (WY) at the time would have resulted in a total return of roughly 18%, which is not bad, but trailed the 28% return of the S&P 500 over the same period. Now that the housing recovery has materialized, the stock may have some more upside.
Almost every analyst or investment strategist is negative on Gold at the moment, even after a horrible performance by the metal in 2013. On marketwatch.com today, Deutsche Bank was reported to jump on the gold bear-wagon, with an average forecasted price of $1,141, from an average price of $1,413 in 2013. The bear-wagon is pretty packed at the moment but there are scenarios that, if occur, can cause Gold prices to rise once again.
It dawned on me one day that my cell phone calls aren’t inadvertently disconnected as often as they used to be. The reception I get lately from most if not all locations is of very high quality. I gave credit to my cell phone service provider for expanding its network and improving its service. But then I wondered if they really deserve the credit, or if there were other reasons for our improved cell phone service. As we will go over in this article, the answer is yes, and it offers us a compelling opportunity to invest in.
It’s the beginning of a new year and many of us find ourselves reflecting on the year gone by, thinking about both our accomplishments and failures. The list of New Year’s resolutions created just one year ago has been long forgotten and replaced with a new list, equally as ambitious as the previous list and receiving an inordinate amount of our attention for at least the next 3-4 months. After that, it’s back to life and business as usual.
But before you forget, take a look at your portfolio and make sure you’re not taking undue risk or leaving opportunities on the table.
For the last four years, Barrons has produced a list of 10 stocks thought to be good investments for the following year. Last year’s picks performed quite well, outperforming a surprisingly strong S&P 500. For 2014, Barrons has once again created a list of 10 stocks they consider their favorite. We agree with some but