Best Products to Have in Your Portfolio
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Successful investment portfolios practice diversification. Simply put, it's not wise to put all your eggs in one basket. That basket must be looked at regularly to see which eggs are pulling in a profit and which are losing money. Be consistently watchful to make sure you always have the best products in your portfolio.
Domestic stocks are those of American companies traded on the various stock exchanges, such as NASDAQ, the New York Stock Exchange and the American Stock Exchange. According to Kiplinger, some of the most promising portfolio investments for 2016 include AbbVie Inc. with projected earnings in the 16.8 percent range. The pharmaceutical firm produces Humira, used for rheumatoid arthritis. Benefitfocus, a software firm specializing in benefits and health insurance programs, is also on the list, with projected earnings for 2016 at 20.7 percent. Burlington Stores, a clothing retailer having both a brick and mortar and online store presence, is also expected to earn 17.2 percent by the end of 2016.
Kiplinger also has its picks for international stock investment in 2016. One thing the stocks all have in common is that they are traded in the United States. Keep in mind that international stock shares are often more expensive than the domestic alternative. Apple is on the Kiplinger list, and valued at $741.2 billion. While 2015 was a banner fiscal year, with projected earning growth at 39.7 percent, 2016 is expect to be more modest, at 7.5 percent. Costco Wholesale is also expected to be a good performer for 2016. By the fiscal year ending in October, earnings growth is expected to be 8.8 percent. Within the next 10 years, Costco expects to have roughly 1,000 stores in the United States and to increase its overseas footprint.
Investing in Bonds
Bonds are considered a lower-risk investment. In turn, they earn a smaller profit. Most people invest through mutual funds, which package several types of bonds into one product. U.S. Treasury Bonds, available through the government's TreasuryDirect website, are some of the most well-known bonds available. They are offered in short-term notes and long-term bonds, as well as the inflation-protected TIPS option. As of 2016, when you purchase a U.S. Treasury Bond, you pay 35 percent of the face value for the bond. The buyer of the bond gets interest on the investment every six months and then the entire value of the bond at maturity, which is usually 30 years.
Currency investments can be risky and usually make up a small portion of most portfolios. Money values are constantly going up and down depending on factors affecting the global economy and individual countries. In 2015, Futures Magazine named the best currencies for long-term investments, with the New Zealand Dollar coming in on top. The country's central bank is the only one within developing nations that is planning on raising interest rates, a sign of economic health. The Singapore Dollar came in second, followed by the Hong Kong Dollar. All three show limited risk, but in a global economy, that could change on a dime.
- Domestic stock investment
- Treasury bonds
- Investment in currencies