There are several people who think hedging against (potential) upcoming inflation is the best investment to do. Investors fears another inflationary period as we lived during the 80′s.  If it’s the case, buying gold (through gold ETF?) maybe a great solution.

The question now is, what’s going to happen to gold after it hit our first target level?

The main trend continues to be positive and I believe that any pullback in this market should be met with good support. It is possible that we could see a pullback of $20-$25 which would not change the overall positive trend of the market which we see continuing until the end of the year.

As readers of this blog know, we have an upside target zone of $1,250-$1,300 an ounce for gold (I bet the president of Barrick Gold thought the same way when Barrick issued for billions of debts in order to buy back previous gold contract at $900 an ounce). While that target zone is still in place, we believe that the huge “energy field” that we’ve discussed in our earlier gold videos is capable of pushing this market higher.

In this new video I explain some of the areas that I’m looking at and also some of the places where you can place tight stops to lock in profits.

As always the videos are free to watch and there is no need to register. I would love to hear your views on gold in our Trader’s Blog comment section.

If you are looking to trade Gold, I suggest you look at the list of the Best ETF Gold.

For the past 3 or 4 months, the world has stopped turning and only talks about the H1N1 (aka the Swine Flu). I’m not here to discuss whether we should get concerned or not about the H1N1. I’m here to size an opportunity. If everybody talks about H1N1, there must be a few stocks that will show some significant gains if the virus keeps hitting the globe.

H1N1 Stocks list (1yr return is as of November 11^th 2009 according to Bloomberg):

Roche (NYMEX: RHHBY) (1yr return: 18.30%)

Roche is the maker of the Tamiflu. This is the first drug combating the H1N1. Since is well known in the pharmaceutical environment (ADR soared a few years ago when we had the SARS coming our way), the stock already surged. However, it doesn’t mean it won’t go up again if the H1N1 death keeps rising!

GlaxcoSmithKline (NYMEX: GSK) (1yr return: 14.10%)

This is another vaccine maker (Relenza). GSK is a major H1N1 vaccine supplier for Mexico and Canada. This should be a great years for this company too.

CSL Limited (ASX: CSL)

CLS limited is an Australian company which was one of the first to create a vaccine against the H1N1.

Johnson and Johnson (NYMEX: JNJ) (1yr return: 5.18%)

I would personally put my $5 on JNJ. What is the link between H1N1 and this stock? They are the marketer of the famous Purell! Regardless if the H1N1 flu is revealed to be dreadful, the usage of Purell will only grow during the upcoming years. This may become one of the best products among JNJ. Since I already like the stocks for its diversification (products and markets) and its consistent dividend, I think JNJ is a stock to be held in your portfolio.

Other H1N1 Stocks to consider (linked to the H1N1 vaccine):

BioCryst Pharmaceuticals Inc. (BCRX)
Novavax, Inc. (NVAX)
Hemispherx Biopharma, Inc. (HEB)
Sinovac Biotech Ltd. (SVA)
Vical Inc. (VICL)
Inovio Biomedical Corporation (INO)
CEL-SCI Corp. (CVM)
Generex Biotechnology Corp. (GNBT)

image source: chrisstreeter

During its last quarter update, RIM has shown disappointing results. It shares drop like a heavy rock in water. However, there are several reasons why RIM is still a buy.

The creator of the BlackBerry, this magical little piece of plastic, should not be left for dead as it still has strong points in its favour.

5 Reasons why RIM is a BUY

#1 RIM’s Competitive Advantages Intact:

Several people (aka CrackBerries) are used to the BlackBerry ways of working and wouldn’t trade it.

Battery life is a major advantage for RIM since no other phone lasts longer.

Competitive gaps in term of browsing and cell phone applications should keep RIM ahead of the competition and keep the stock as a buy.

#2 Don’t fear moderating ASPs. Recent ASPs drops don’t come from competitive pressure but more from RIM new positioning to penetrate the mainstream smartphone market.

#3 Strong market growth for smartphones. With new RIM positioning to penetrate this market combined to growth forecast of 40% in the smartphone market, RIM will see its profit bursting in a few years.

#4 Healthy margins for RIM. Supply chain efficiency provides RIM with high profit margin that will keep RIM as a buy for the upcoming year.

#5 New products ahead. RIM is actually working on several new products that should consolidate its position as the leader of all smartphone.

Still not convinced that RIM is a buy?

You should take a look at this graph and notice how the iPhone is getting market shares from Palm and RIM’s remain untouched.

Definitely, RIM is a BUY!

image source: businessinsider.com

The US market is going through one of its worst recession ever and some people are even talking about a market depression. So which stocks to buy in recession? Instead of giving you a list of stocks to buy (which I provide once in a while anyway ), I will outline so important key point to look at when you are doing your stock hunt

Cash is king

Nothing is more important than cash during though time. Why? Because sales will usually go down, banks are less likely to lend money to companies and competition is stronger than ever since everybody is battling for the only slice of the pie left by the economic crunch. When looking at financial statements, you must look at the short term assets (cash, money market funds, receivables, etc.). While having a lot of liquidity is a good thing, you also need to look at the financial obligation of the company you are about to buy. If their liquidity ratios are good, then you have a solid company that will be able to not only survive in this hostile environment but probably grow even stronger out of it.

#1 Cash will enable the company to meet their financial obligations and maintain a good credit. Therefore, it will be easier for this company to get more financing if they need to do any projects.

#2 Speaking of which, cash will enable the company to buy more performing equipment and invest in R&D. This will obviously enable the company of remaining competitive and probably increase its profitability once the economy start going up again.

#3 If they have a lot of cash, they will also be able to maintain their best element in place and probably recruit the best employees in the industry. Most workers want to work for a well establish company that will last. They seek stability, same for the shareholders

There are many other factors to consider when buying stocks in a recession. Cash was the first of them. During the next months, I will add more key factor to buy great stocks in 2009. Stay tuned!

Since techno stocks seems to be part of a new hype (Google, Amazon and other techno stocks have soared since November 2008), Apple stock is getting more and more attention from financial analysts.  This may definitely be a great buy if you are looking for a strong techno stock.

In this short video, I will take a look at Apple, Inc (NYSE_AAPL). I have to admit I love Apple products. I have an iPhone, an iMac and an iPod touch and several other Mac add-ons.

I have always loved their products, but I tend to be fickle with the stock. Thanks to our “Trade Triangle” technology, I have fallen in love all over again with Apple’s stock. I had been looking for this market to move lower based on the economic conditions and the market action, however this proved to be a false indication as Apple has moved to its best levels in quite some time.

I’ve just finished a new video on Apple, my first video on Apple in a while. Take a look and I’ll give you my thoughts and target zones for this very exciting stock.

The world has changed, it is not a buy and hold market anymore. You need to be nimble, trade with a game plan and be disciplined. Those are the key mantras of a successful trader.

As always, this video is with our compliments and there is no need to register to watch.

Enjoy this video by clicking here.

image source: Apple Logs

As you can see, there is not even 20 stocks that are positive among the S&P 500. This shows how bad the market was early this year.  While the S&P was down -11.67% at the end of the first quarter, it is not surprising to find that only a few stocks were able to add some green to your portfolio!

Now, is it the time to buy those stocks? This is a tricky question! I would certainly not go for the top performing as they probably reached their peack by now. However, I am hearing a lot of good things about Wells Fargol here and there. Therefore, there is still a possibility to see this stock soars in 2009. The price is still pretty low so if could easily reach $10 without facing any market liquidity problem. While everybody sees banks stocks pretty low, a few of them will definitely show their good intrinsic value and investor will buy them sooner or later. After all, Wells belongs to Mr. Buffett

Another interesting point is that there are a lot of great stocks in 2009 that are related to consumer goods. This is pretty normal as we are in a recession and people will slow down most of their expenses (such as new cars, duh!) but will keep eating and buying basics goods. This is why those company perform well in a bear market. If you believe that the recession will last during 2009, this may be a right pick. However, I think we are already too late to pick defensive stocks. It is now time to hunt the next bomb in the stock market!

Happy Trading!

Following on our recent post about US stocks that can make it to the top of the best stocks in 2009, we have 3 more stocks we think can be interesting:

Procter & Gamble (NYSE: PG, $46.95 on March 13^th)

P&G is probably one of my favorite companies when we are talking about buying stocks in the middle of a recession (depression?). They offer such a wide variety of products in almost 100 countries. It is basically one of your best shot if you are looking at a stock that will survive any economic crisis. Another key point is that they have a lot of liquidity in hands. That put P&G in a great position to make any acquisitions, make an aggressive marketing campaign or simply assuring the company growth through a tough market.

Its P/E ratio is pretty low these days (around 12.5) which represent its lowest since the past 20 years! Another interesting point if the stock is taking longer than expected to surge would be is high dividend yield. It currently gives a 3.41% yield which would cover for more than inflation for 2009.

Sigma-Aldrich Corporation (NASDAQ: SIAL, $34.60 on March 13^th)

This is probably a company name you didn’t hear much from so far. Sigma-Aldrich develops, manufactures, purchases and distributes a range of biochemicals and organic chemicals and equipment throughout the world for the pharmaceutical and medical industry. As the population is aging, the need for this kind of product will constantly increase. Therefore, no need to worry about the recession! As it is the case for P&G, the P/E ratio is pretty low at 13.04.

Stantec Inc. (NYSE: STN, $17.70 on March 13^th)

One last pick for the best stocks in 2009 list of today is Stantec, a Canadian based company offering consulting services in planning and engineering. This engineer firm should benefit from the major investments in infrastructures on both sides of the border (Canada and USA). Because they offer have an environmental division, they should get ahead most of their competitors. The “green effect” will surely carry their business to another level.

Disclaimer: please note that we are not doing any buy or sell recommendation on any stocks. These opinions on stocks should be used for your entertainment only. We are not responsible for any losses or cost related to stock transactions related to this website.

I was doing some research on great stocks for 2009.  The main key was actually to look for companies that should perform in a though economic period.  Stocks that have been under evaluated by a psychotic market!

Here are a few stocks that could make the best stocks in 2009 list:

Walt Disney (NYSE: DIS, $17.13 on March 13th)

At a price of about $16, the stock is being traded a one third of its intrinsic value. The great thing about Disney is its capability of taking an old success and brings it back to make even more money with it! Another good point is the great profitability the company gets back from its amusement park such as Disney Land and Disney World.

Johnson & Johnson (NYSE: JNJ, $50.64 on March 13th)

This is another solid company that is being sold under its intrinsic value. The stock is giving a dividend yield around 3.80% and the company has a lot of liquidity. It’s well diversified among several products. This could be one of the best stocks in 2009 and even the upcoming years!

M&T Bank Corporation (NYSE: MTB, $39.34 on March 13th)

Yup, I’m talking about buying bank stocks in this big turmoil. The thing is that the trust in financial stocks is so low that great buying opportunities emerge from the market. It is currently trading in the $30’s after being as high as $120! Since it’s a regional bank, M&T Bank Corporation was less affected by toxic financial products and the subprime mortgages.

Omnicom Group (NYSE: OMC, $23.61 on March 13th)

This is the world biggest advertising company. For obvious reasons, the company will definitely suffer from the downside of the current economic cycle. However, the size of the company and its expansion across the world will assure income stability and cash flow. The stock is currently trading at 8.6 its forwarded P/E ratio for 2009. Even with all the bad news, the market expects Omnicom to increase its revenue by 10%.

Disclaimer: please note that we are not doing any buy or sell recommendation on any stocks. These opinions on stocks should be used for your entertainment only. We are not responsible for any losses or cost related to stock transactions related to this website.

Every month, we will pull out a chart of the best stocks 2009 so far. You will find top stocks gainers and winners during 2009 with a year to date yield.

Best stocks 2009 as of March 6^th 2009:

As you can see, the best stocks so far in 2009 are mostly leveraged ETF’s bear financial market. Will it continue this way? I would trade more leveraged financial ETF’s this year. Most US bank stocks reached very low levels. Chances are they even might be good picks for stocks later on in 2009!

Anyway, it has never been a good idea to keep leveraged ETF’s in your portfolio over the long run. Imagine if US bank stocks surge 15% at the end of the year? This would create a negative return of -45%! This would be pretty bad if you are holding them thinking they will still be part of the best stocks for 2009… think again!

Compare credit cards at DebitCard.com