Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19
Central Banks Move To Keep The Global Markets Party Rolling – Part III - 14th Aug 19
You Have to Buy Bonds Even When Interest Rates Are Low - 14th Aug 19
Gold Near Term Risk is Increasing - 14th Aug 19
Installment Loans vs Personal Bank Loans - 14th Aug 19
ROCHE - RHHBY Life Extension Pharma Stocks Investing - 14th Aug 19
Gold Bulls Must Love the Hong Kong Protests - 14th Aug 19
Gold, Markets and Invasive Species - 14th Aug 19
Cannabis Stocks With Millennial Appeal - 14th Aug 19
August 19 (Crazy Ivan) Stock Market Event Only A Few Days Away - 13th Aug 19
This is the real move in gold and silver… it’s going to be multiyear - 13th Aug 19
Global Central Banks Kick Can Down The Road Again - 13th Aug 19
US Dollar Finally the Achillles Heel - 13th Aug 19
Financial Success Formula Failure - 13th Aug 19
How to Test Your Car Alternator with a Multimeter - 13th Aug 19
London Under Attack! Victoria Embankment Gardens Statues and Monuments - 13th Aug 19
More Stock Market Weakness Ahead - 12th Aug 19
Global Central Banks Move To Keep The Party Rolling Onward - 12th Aug 19
All Eyes On Copper - 12th Aug 19
History of Yield Curve Inversions and Gold - 12th Aug 19
Precious Metals Soar on Falling Yields, Currency Turmoil - 12th Aug 19
Why GraphQL? The Benefits Explained - 12th Aug 19
Is the Stock Market Making a V-shaped Recovery? - 11th Aug 19
Precious Metals and Stocks VIX Are About To Pull A “Crazy Ivan” - 11th Aug 19
Social Media Civil War - 11th Aug 19
Gold and the Bond Yield Continuum - 11th Aug 19
Traders: Which Markets Should You Trade? - 11th Aug 19
US Corporate Debt Is at Risk of a Flash Crash - 10th Aug 19
EURODOLLAR futures above 2016 highs: FED to cut over 100 bps quickly - 10th Aug 19
Market’s flight-to-safety: Should You Buy Stocks Now? - 10th Aug 19
The Cold, Hard Math Tells Netflix Stock Could Crash 70% - 10th Aug 19
Our Custom Index Charts Suggest Stock Markets Are In For A Wild Ride - 9th Aug 19
Bitcoin Price Triggers Ahead - 9th Aug 19
Walmart Is Coming for Amazon - 9th Aug 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

The Best Stock Investments to Beat Ben Bernanke's War on Savers

Companies / Investing 2013 Jun 10, 2013 - 03:57 PM GMT

By: Money_Morning

Companies

Garrett Baldwin writes: For the last four years, ordinary Americans have struggled to rebuild their wealth in the wake of the Great Financial Crisis.

Last week, the Federal Reserve Bank of St. Louis reported that the average U.S. household has recovered only 45% of its wealth lost during the recession.

Of course, the Federal Reserve won't acknowledge that its Chairman, Ben Bernanke, has been a principle driver in the underperformance of the middle class' return to financial normalcy. Bernanke has removed incentives for anyone to keep their dollars in a savings account by knocking interest rates to near-record lows.


Meanwhile, nearly 50% of Americans do not own any stocks or bonds. Given recent memories of their wealth evaporating, it's been difficult to instill much confidence for those who lost so much.

Low rates and lost confidence in the markets have left more Americans vulnerable to inflation, accelerating costs of staples, and uncertainty about their financial future.

But there is good news.

As the U.S. policy continues to exhibit how government intervention in the financial markets favors the rich and leaves the middle class out in the cold, there still are ways that the average investor can make money.

And it all starts with one simple piece of economic advice.

You need to take charge of what's available in the markets and put your money to work with investments that offer a healthier dose of confidence than Ben Bernanke's economic alchemy ever could.

Let me explain...

Embracing the Free (Energy) Market

Right now, keeping money in a savings account is going to cost you due to inflation. And putting much faith in the U.S. government's rates will not do much to instill much confidence.

But by investing in companies engaged in the procurement and distribution of valuable commodities will provide a steady return on your investment in any economic environment.

Embracing these companies that have the capacity to expand globally and pay strong dividends can help beat back Bernanke's war on savings accounts.

That's because publicly owned American companies, despite new regulations and government intrusion, find a way to perform around the rules and policies meant to hold them back. They perform through innovation and competition. They thrive off their ability to provide a need in a market.

Simply put, investing in companies that facilitate global trade are the best investments to defend against government's reckless fiscal policies. Yes, the markets do go up and down, but investing for the long-term is an important strategy to help rebuild wealth in these tough times.

Of course, this sounds so simple.

But for a person like me who is fascinated by global trade, innovation, and problem solving, I tend to "geek out" by what's happening right now in this world.

And of course, the money that can be made...

The Importance of Technology When Profit Hunting

One thing to embrace when finding these best investments: technology.

Technological innovation, in any shape or form, is a remarkable thing. And most important to us, it's extremely profitable when the government gets out of the way and allows business to transpire.

I find it incredible... and I repeat incredible, that someone can invest their money in a natural gas producer and the following story transpires within days.

Due to incredible technological innovation, a natural gas producer in North Dakota has the capability to drill through thousands of feet of sedimentary rock that has been there since the dinosaurs, extract billions of cubic feet of natural gas, ship it through a complex pipeline system to ports in Louisiana, convert it to liquefied natural gas (LNG) through an engineering process that few people understand, ship it across two oceans, convert it back to the state required to generate power, and then transfer it on trucks and trains to a remote area of Japan to a manufacturing plant where they make the cars that we ultimately purchase.

And after all of those components moving fluidly, after all of the cooperation and companies taking part in this process for their own expected gains... we can go back to the pipeline company that transferred millions of cubic feet of natural gas per day, and they'll pay us more than 7% on our money.

Meanwhile, the best that the United States government can do right now is pay us a little more than 0.2% on a two-year bond.

We will take the free market every time.

The Best Investments to Beat Bernanke

By dissecting the story about how natural gas gets from the depths of North Dakota shale fields to Japanese manufacturers, one can uncover some of the best investments for yield. The value chain of natural gas companies provides ample opportunity for share appreciation and higher than average dividends.

And the best opportunities for both come from midstream companies connecting the producers to the downstream consumers.

This includes a Master Limited Partnership like Regency Energy Partners LP(NYSE: RGP) or Enbridge Energy Partners L.P. (NYSE: EEP) both provide annual yields above 7%, and are poised for even more growth as the companies experience greater demand for their pipeline, transportation, and storage services.

Naturally, it's important to own U.S. bonds as the part of any portfolio for its security, but the markets, despite bias against what happened in 2008, continue to offer reliable streams of return on investment as the global recovery continues and stability returns to the markets.

By ignoring dividend stocks in a strong growth industry like natural gas, you'll be leaving money on the table over the next three years while watching your buying power decline.

For more of 2013's best investments, don't miss This Could Be the Most Lucrative Time Ever for Biotech

Source :http://moneymorning.com/2013/06/07/best-investments-2013-beat-bernanke-by-embracing-the-free-market/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules