"Investment and Financial Management" Master the 10 tips for investing and make a full profit this year

"Investment and Financial Management" Master the 10 tips for investing and make a full profit this year (Alberta Times) Last year, the S&P 500 Index almost ended flat, while the Dow Jones Industrial Average rose...

"Investment and Finance" Master 10 Investment Tips to Make a Lot of Money This Year (Alberta Times) Last year, the S&P 500 Index almost ended at a flat level, while the Dow Jones Industrial Average rose 5.5%, a relatively outstanding performance. Investors who invested in the 10 Dogs of the Dow outperformed the broader market. This year, under the threat of the European debt crisis and slowing global economic growth, the MarketWatch website has put forward ten suggestions, hoping to help investors win unexpectedly in the market. ●Hold on to the 2011 winners. The challenges faced by investors this year are similar to those in 2011, which means last year's winners will continue their momentum this year. Therefore, "Dow Jones Dog Stocks" are still the first choice for investment. They include AT&T, Verizon, Merck, Pfizer, GE, DuPont, Johnson & Johnson, Intel, P&G and Kraft. Among them, AT&T has the highest dividend yield. ●Hold defensive stocks. This year, advanced countries will continue to deleverage. Investors should pay attention to capital preservation and cash flow maintenance, while arranging defensive stocks. Typical defensive stocks include consumer staples stocks, medical and public utility stocks. Among them, analysts from Capital IQ, a subsidiary of S&P, first recommended consumer staples stocks. ●Buy cyclical stocks. Capital IQ said in a research report: "Under turbulent market conditions, a balanced layout of cyclical stocks and defensive stocks is the best strategy." Therefore, investors can buy stocks that underperformed last year, including raw materials, industrials, energy and technology. "Some oversold cyclical stocks will make a comeback," said Leuthold Group Chief Investment Officer Leuthold Group, which recommends stocks in railroads, chemicals, industrials and raw materials companies. ●Growth stocks that cling to dividends. U.S. corporate balance sheets are generally strong, but in an environment of slowing growth, top companies have the most advantages. Their characteristics are large-cap stocks that are less sensitive to the economy, business diversification, strong cash flow, and good use of capital for mergers and acquisitions, implementation of treasury shares, and fixed high dividends. Rosenberg, a trader at Gluskin Sheff & Associates Investment Company, said that high-quality companies with dividend yields exceeding U.S. Treasury bonds include AT&T, 3M, Exxon Mobil, Emerson Electric, McDonald's, Johnson & Johnson, Colgate and Walmart. Other high-yield defensive stocks include Pauline and Microsoft. ●Consider buying small-cap stocks. The large-cap Russell 1000 index rose 1.5% last year, but the small-cap Russell 2000 index fell 4.2%. Bernstein, CEO of Richard Bernstein Investment Consulting, believes that the situation may be reversed this year. "The safest investment target in the global stock market is U.S. small-cap stocks." De Sankti, a strategist at Bank of America Merrill Lynch, said that one of the advantages of small-cap stocks is that they are less exposed to the international market and are less affected by the appreciation of the U.S. dollar. He recommends high-quality small-cap stocks with larger companies, arguing that they will benefit from the hot merger and acquisition market. ●Consider high-quality European stocks. The euro zone economy may have fallen into recession, and Bank of America Merrill Lynch global equity strategist Hartnett recommends buying "the best quality and severely oversold" stocks. He said: "European stocks are the most oversold relative to U.S. stocks in 20 years. Take advantage now to buy stocks with strong profits, solid balance sheets and strong gross profit margins." He recommended Telefonica, Total and BP. ●The dollar is king. The market generally expects that the euro will further depreciate this year, and BBH even asserted that the euro exchange rate will fall to 1 euro to 1.2 U.S. dollars in the second quarter. If this comes true, the U.S. dollar will be the biggest beneficiary. The US dollar index has risen all the way from last year to the beginning of this year; the Deutsche Bank US dollar index long index fund also rose by 6% in the second half of last year. Shilling, president of A.Gary Shilling Investment Consulting, pointed out that in addition to the euro, the U.S. dollar will also rise against commodity currencies such as the Australian dollar, Canadian dollar and Mexican peso this year. ●Embrace gold. Bank of America Merrill Lynch strategist Hartnett expects that central banks in Europe and other countries will print more money this year to solve the debt crisis, which will benefit gold. He said: "Gold is still the best tool to cope with the impact of global debt deleveraging." Analysts at S&P are also optimistic about the future of gold, predicting that the price of gold will reach 1,900 yuan per ounce before the end of this year. ●Buy presidential election concept stocks. Judging from historical experience, U.S. stocks rose by an average of 6% in each election year, with the most outstanding performing stocks including consumer staples, energy and industrial stocks; however, technology, raw materials and public utility stocks performed below average. According to data from the Stock Trader's Almanac, the re-election of the current president is beneficial to the rise of U.S. stocks in the election year. ●The market is turbulent, safety and stable income are paramount. Market conditions are expected to remain volatile this year. Fund trader Rosenberg recommends that investors adopt a prudent and flexible strategy and consider buying high-quality stocks and bonds, income-generating oil and gas joint ventures, and real estate investment trust funds. In addition, precious metals are also ideal targets.