2013 is shaping up to be a crucial year for investors. In 2012, over 40 governments around the world are hosting elections, so generally stocks should do pretty well as governments will prop up the stock market to give the impression of prosperity. However, what will happen in 2013 when those elections are over? The following are a few suggestions as to how to invest wisely in 2013.
Commodities:
We are in the midst of the great commodities bull market. The bull market in commodities is not over yet because every bull market must exceed its previous high – not adjusted for inflation. In this case, many commodities such as silver have not yet exceeded their all time high (silver’s all time high was a little over $50 an ounce). So no matter what you do, don’t get the overall direction wrong: commodities are in a bull market. As the saying goes, if you buy in a bull market you can’t go wrong. Even if the market temporarily goes against you, you will be vindicated in the long run.
Natural Gas:
With prices of Natural Gas reaching a 10 year low some of the World’s largest investment banks, such as Goldman Sachs, have been backing this as an investment to take with you into 2013. Viewed as a long term buy, demand is due to increase following the closure of many rigs around the World. The Electrical Power demand is expected to increase by 12%, Transportation demand to increase by 5% and Industrial demand to increase by 3.5%.
Bonds:
If you are a more conservative investor and want a safe and secure place to put your capital for a number of years then investment plans are probably a more suitable option. They are slightly more adventurous than the high street banks bonds, which are more popular, but considering these often barely beat inflation investment plans will almost always reap better financial rewards. The following are two of the best:
Investec FTSE100 Bonus Income Plan
With a guaranteed income yield of 6.84% (fixed) and potential top up bonus, this 5 year plan also comes with an ISA option meaning capital invested can be done tax free.
Morgan Stanley FTSE Protected Growth Plan
This 6 year structured plan protects your capital and has a potential early exit return of 28%. There is also no limit to the potential full term maximum growth.
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