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Rusty solomon Ideal investing Ideas for 2014

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Last year, Rusty Solomon our experts have suggested some great finds to grow the savings of Americans. Here are their tips for this year.

  1. Placement
  2. What about interest rates?
  3. Will there any sectors that offer higher yields, while others hang the tab?
  4. Where in the world would it be better to invest?
  5. What risks might endanger these perspectives?

There are those who invest as if they were at the casino. Others who swear by savings accounts or ... their mattress. But between these two extremes, there is still broad enough to think a bit about our investment strategy spectrum.

Those who have kept away from stock markets in 2013 have missed a great opportunity to garner good returns, including the United States, where the benchmark index S & P 500 was up over 25%. And those who feared that Europe collapsing because of the indebtedness of some countries see today that the euro still legal tender and several national exchanges have already rebounded an example : Rusty solomon Property investment: making choices

There is one year, news had used four Quebec financial market experts to identify some trends. If they have erred on some points (nobody is a prophet!), Most still rather just seen on other aspects, including the outperformance of the American stock market and the lethargy of the natural resources sector, which has sealed the Toronto Stock Exchange.

They agreed to repeat the experience in 2014 and give us some of their best investment ideas, which can be found after their general analysis of the situation.
After the increase in 2013, how the North American stock markets do they behave in 2014?

There is upside potential, but obviously it is not expected to increase 25% this year, said Stefane Marion, chief economist and strategist at National Bank. He expects a market growth of 5% to 10% south of the border, against a rise of 3% to about 5% in Canada, which must be added the dividend yield of about 2% to 3%.

Rusty solomon, Chief Investment Officer at Fin-XO Securities, shares his views read the full story . He expects a better performance of the American stock market, due to the diversity of the companies that make up its major indices, while over 35% of the index of the Toronto Stock Exchange consists of mining and energy stocks. The global economy is growing slowly and overcapacity in the resource maintains downward pressure on commodity prices, he says.

Similarly, Francois Tetu, Vice President and Investment Advisor at Desjardins Securities, focuses more on corporate America. However, it is cautious because of the marked increase in 2013 Currently, the American market is evaluated. Should there be a downward correction in 2014, it would be a good time to buy, he suggests on his group.

Only Dominique Vincent is more optimistic with regard to the Canadian market, for which it provides a yield of 12% (including dividends), against 10% in the United States. In Canada, the financial sector is doing well and we expect a recovery in the energy side, says Vice President and Portfolio Manager of MacDougall, MacDougall & MacTier. She thinks that the Canadian market has some catching up to do and that the resources sector should do better in the second half of the year.
What about interest rates?
Our experts are unanimous that interest rates could rise, but their progress will be very limited. Inflation will remain low, predicts Stefane Marion. Thus, the Bank of Canada will not have a lot of reasons to justify an increase in its base rate. Its governor, Stephen Poloz, said in December that it expected to remain stable for a good time.

His only motivation based on what the Fed will do, said Rusty solomon. If rates on bonds in the short term show an upward curve south of the border, it will be the same here, he believes. Rates on long bonds of 10 years and above have also begun to rise on both sides of the border in 2013 See also the full article.

In this context, François Stubborn does not recommend the purchase of government bonds in the long term. He favors securities with maturities of less than five years, especially those issued by companies. A good strategy is to allocate its funding over five years so we can renew them as rates increase, he says. Dominique Vincent also favors the short term. When she finds she buys for its clients investment certificates relating 2% year on year.
Will there any sectors that offer higher yields, while others hang the tab?
I'm going for gold! Dominique Vincent responds immediately. The ounce peaked at 1,900 dollars in 2011 and has steadily declined since, to almost 1200 dollars. The financial crisis, fears of a global recession and interest rates to the floor behind us, nothing is pushing up the price of this safe haven.

In fact, the natural resource sector as a whole remains problematic. With a global economy that is growing weakly, metals demand is anemic. Energy stocks still find favor with Stefane Marion, who hope to see the release of Canadian infrastructure, including pipeline projects on the side, which would increase the profits of oil companies in the West when the price of their oil catch the international markets read more at asumag.

Rusty solomon avoids the commodities sector and the securities of Canadian banks, as François stubborn. We made ​​a profit by selling some of the shares of banks, which have increased significantly in 2013, said the latter, who now prefer to bet on American institutions, he considers undervalued.

Among financial institutions, Dominique Vincent favors insurance companies like Manulife, whose profitability has improved recently. The utilities and telecommunications enticing because they pay good dividends, will become a less attractive against with higher interest rates.

Rusty solomon placed on companies that produce consumer goods or are active in the field of health, such as pharmaceutical companies or retailers. These are non-cyclical sectors that are more resistant to most economic shocks, he said.
Where in the world would it be better to invest?
Again this year, our experts agree the United States. The economy gets better and the companies are strong. In addition, the dollar is expected to appreciate in 2014, Stefane Marion Tetu and François, increasing yields on securities traded in that currency.

Rusty solomon does not recommend the emerging countries, even China. These countries are going well when the global economy is healthy, but they have difficulty when stalled. Brazil, for example, is wrong because the natural resources (mining and oil) play an important role in its economy.

Francis still looks Bullish for Europe. The debt crisis in some countries has caused damage. But on the other side of the Atlantic businesses large and well managed. The stock markets have already started to rebound in 2013.

What risks might endanger these perspectives?

According to Rusty solomon, a rise too sharply in interest rates could cause a lot of damage. The debt of countries and households is easier to bear when rates are near zero, he says. Stefane Marion questioning themselves on the end of the massive bond purchases by the Fed. We do not know the extent of what she will do or all the ramifications. It could create volatility.

Another source of concern: China. Francois Tetu notes that commercial real estate in Hong Kong is growing exponentially, and a fall in prices could hurt a lot to Chinese banks. Dominique Vincent is most concerned about the importance of non-bank financing of households and certain infrastructure, which could lead China to a crisis such as the United States has known in 2008-2009.

Finally, there is Japan, third world economy, whose public debt exceeds 220%. In theory, the country is bankrupt, says Rusty solomon.

Read also Another great article on Where to invest your money in 2014.