Investment Ideas For A Choppy Market

by James & Miel on November 28, 2008 · 0 comments

Hi All, 

Its been a rough few weeks for investors.  However, if you’re still interested in making money on the market, here are a couple of ideas that have come up in conversations we’ve been having with knowledgable people.  

1) Hospitality Property Trust:  Interested in a 26% dividend on shares that beat the pants off of Q3 earnings projections?  

Consider the Hospitality Property Trust. This company is a REIT, or real estate investment trust. It owns a number of hotels and travel centers primarily in the United States.  Their business strategy focuses on acquiring cash flow properties and signing management agreements to handle the hotels, giving the trust one of the best balance sheets in the industry.  If you’re worried about a downturn, checkout HPT’s preferred shares. They trade under symbols HPT-PB and HPT-PC.

2) Municipal Bonds: If you don’t want your money on the stock market and aren’t hot about the low yields on money market funds, you might consider a municipal bond. Right now municipal bonds have at least two advantages. First, their yields are often tax free. Second, these bonds are yielding around 5.7 – 5.9% percent annually. This is better than the 3.2% you’d get in a money market account or the 3.8% 5 year CD’s are offering. The only catch is you’ll probably need at least $5,000 to get started get in this asset class.

So here is our weasel wording: Any purchase you make should be appropriate for your portfolio and risk tolerance. You should also do your due diligence, e.g thoroughly research any investment to be sure its financially sound, etc., etc., etc.

Also, we also don’t own any of these investments, but do think they look promising.

Best,

James



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