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I’ve been incredibly vocal warning about one of the biggest risks in the market today: rising interest rates. And judging by the movement of 10-year Treasury yields — currently around 2.82 percent versus a low last spring of 1.6 percent — I’ve been spot on.
But I haven’t let the rise in interest rates, or the dramatic underperformance it has caused in rate-sensitive sectors like utilities and real estate investment trusts (REITs), blind me to equally compelling opportunities in other parts of the market.
Instead, I’ve been hard at work using my own research and a particular “ace in the hole” to find several big winning sectors and winning names for my subscribers. I couldn’t be happier, because many of these sectors are firing on all cylinders, and many of these names are breaking out.
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| Companies that transport oil and gas to market are making a killing. |
Domestic energy is one market I identified as a winner some time ago. New deposits of oil and gas are being pumped out of the ground in a whole host of new locations around the U.S. Those resources, in turn, need to get to refining and export terminals … so the companies responsible for producing them and transporting them to market are making a killing.
One of my favorite names makes rail cars and barges used to transport energy and other products. I first highlighted it back in October, and it has already exploded by more than 33 percent.
I’ve also been bullish on the aerospace sector, since it’s in the midst of a powerful expansion phase. Airplanes are flying full, consumers are paying more, and as much as I hate that when I’m ticket shopping, I love it as an investor. We’re seeing operators take their increasing earnings and plow them back into their businesses, leading to record orders for airplanes and the parts and equipment that go into them.
One of my favorite sector plays is an aircraft-leasing firm that’s poised to make money hand over fist from this environment. The stock just tagged a level it hasn’t seen since February 2008, handing my subscribers double-digit open gains that could grow even more in the months ahead.
A few select financials have also caught my eye, with one recent recommendation hitting a fresh 75-month high just this week. I’ve also tried to help income-seekers by highlighting a name or two in sectors like pharmaceuticals. And one of my plays there just hit an almost seven-year high.
The common thread uniting all of these picks is the powerful Weiss Ratings, which are designed to identify stocks with solid performance and strong fundamentals. I’ve been focusing on the top “A” and “B” rated names when screening possible investments, and it’s been paying off nicely.
Naturally I can’t name specific companies and ticker symbols here. That wouldn’t be fair to my paying subscribers. But I think you’ll agree we’re on the right track given some of these big stock-price increases I’ve alluded to today.
If you are not yet enjoying these kinds of successes — while simultaneously avoiding the bond market meltdown I warned about long before it struck — I’d strongly encourage you to give Safe Money a try. All you have to do is click here or give us a call at 1-800-291-8545. I’d love to have you on board.
But if you’re not ready to take that step yet, my best general advice is to continue pursuing a dual investing approach. Avoid the mess that is the bond market, but at the same time, capitalize on select, strong sectors and stocks that can benefit in today’s environment.
The longer-term threats Martin Weiss told you about last week haven’t gone away. But in my view, the improving economy, gradual reduction of artificial monetary steroids, and increased investor confidence are still pointing toward the potential for more gains in the months ahead.
Until next time,
Mike
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
