Best Stock Investment in 2010 & Beyond

The best stock investment in 2010 and beyond could be a penny stock. But that’s pure speculation. The best stock investment available to any stock investor offers investment opportunities previously not available to every-day people. And its profit potential knows no boundaries.

Millions of American investors own just one form of stock investment: equity mutual funds that are offered by investment companies. There’s only one real shortcoming with these funds. Most mutual fund companies limit your choices to the conventional: a variety of domestic and international equity (stock) funds, and perhaps a few specialty funds. This limits your investment opportunities.

On the other hand, your chance of finding the best stock investment in 2010 by sifting through the thousands of issues listed on the major exchanges is nil. It simply won’t happen even if you’re cheating - not in one lifetime, anyway. The thing that makes investing so interesting to me is that no matter what happens in the economy, somebody gets rich by being in the right place at the right time.

The problem for most people in the past was that even if they had a great incite, they did not have enough money or know how to invest and make money from it. There was no easy economical way to place your bet. Now there is, in the form of a stock investment called an ETF (exchange traded fund). These are simply baskets of securities that trade like any other stock on an exchange. Now the small investor is on a level playing field, because the variety of these funds offered is extensive and still growing.

As they say, there are always investment opportunities somewhere. Now you know how to participate. Let’s look at some examples, starting with the recent past. Gold went to a record high in 2009 and might continue to climb if the dollar falls further. You could have simply made a stock investment before gold prices soared by buying an ETF. When the stock market got crushed in 2008 and early 2009 you could have been one of the few who MADE big money by simply owning an inverse ETF that goes up when stock prices fall.

Now let’s look into the future. If you think that the government’s actions in dealing with the financial crisis will result in higher inflation and interest rates… how can you protect yourself and profit at the same time? There are ETFs out there that amount to a bet on interest rates; and some that go up when the price of basic materials like copper, aluminum and steel go up.

How can you profit when real estate or oil prices surge? A simple stock investment, whether for $500 or $5 million, in the right exchange traded fund and you’re in. The list of investment opportunities goes on and on. Now you can invest in a broad array of alternative investments not readily available to you before. And you can put together a TRULY BALANCED portfolio through your brokerage account over the internet.

Go to your brokerage account, or another investment site, or Google “ETF”. Spend some time getting familiar with the list of exchange traded funds available. If you have an investment idea, you’ll probably find a fund that will accommodate you. Especially if things in the economy get dicey in the not-too-distant future, the best stock investment in 2010 and beyond will likely be on this list. Now even the small investor knows no boundaries.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

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How to Identify Stocks That Can Make You Massive Gains

In 2003 I recommended a stock called TASER to my customers. Everything about it looked great. Price, volume and the X factor were all there. I recommended it in the late $20’s and although we got stopped out once we did get back in again and rode it to $290.

Same with HANS in 2005. They always have the same characteristics. The key is having the patience to wait for these characteristics to show and then have iron discipline to stick with them for as long as possible. That is much easier said than done.

What are these characteristics? Glad you asked me

1) They are always relatively new companies. When I say new I do not mean Initial Public Offerings. I.P.O.’s but there one huge run up in price always occurs in the first 10 years of the listing. Common business. The first ten years is where the massive growth is. After that things plateau out.

2) All time highs. Every super stocks I have snagged has always been at all time highs in price. Forget stocks that have been around 30 years and at trading at new lows, etc. The very best stocks in each cycle will be at the highest price it as ever been at. It’s usually because of point one above. They are new, rapidly expanding companies and no-one knows how to price it all in. Hysteria and bubbles can occur. This will never happen with a 30+ year stock in an old industry.

3) Volume spikes. You need institutional buyers to flood in. Watch the relationship of volume compared to the stocks float. When the big institutions buy these stocks they usually go on a 2 year+ trend.

4) The X factor is they usually have a big story behind them. In 2003 there was a huge security scare with the war in Iraq and TASR guns for law enforcement was all the rage. I guess it was anew product at the right time and you can imagine the orders they were taking in from just about every police force not only in the U.S.A. but from around the world. In 2005 HANS came out with a new energy drink that was taking the USA by storm. There’s always a big story behind a big stock price rise.

When you find these stocks. And I am talking about stocks that can make you 500%+ returns you have to trade them correctly. You have to know where to enter, how to exit and how much to trade with. When you get it right it can be like winning the lottery.

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