Money Talk!


2011 and Investment

With the Tax relief act of 2010, Coverdell ESA savings account will continue to allow annual contribution of up to $2000 annually. Even though, 529 plans are great, I prefer ESA for its investment choices. If you have an ESA account with brokerage like Schwab & E-Trade, you can invest in any stock, funds or bonds.

My pick for 2011:

DE Deere
C Citigroup
BX Blackstone
PFE Pfizer
CHK Chesapeake Energy
WU Western Union
DD Dupont
MSFT Microsoft
HD Home Depot
LLNW Limelight Networks

Disclaimer: I own all but LLNW in my personal portfolio.

Top 7 stock picks for 2010

CEF: Central fund of Canada, a close end ETF for Gold & Silver. Later part of 2010, will potentially start having some inflationary pressure. With dollar depreciating against all the major currencies, gold & silver are bound to soar.

ACI: Arch Coal: Copper, Oil & Gold were part of 2009 stock market recovery, whereas Coal though it provides 50% of electricity in US and is a pivotal part of any commodity demand still lagged broader commodity prices. I expect coal prices to rise with local & chinese demands. Mining is already lean due to recession. I don't foresee US going into the direction of gas or any other clean fuel for electricity generation for atleast couple of more years. With one of the highest margin in coal industry, ACI is my pick for 2010.

INTC: Intel. This will be a great play on economic recovery and a new upgrade cycle of enterprise spending. Plus, It provides a good dividends for long term investors who are willing to wait.

GLW: Corning. They are jumping all over LED and currently 1 in every 3 LCD panels are manufactured by Corning. I expect a bigger upgrade cycle with economic recovery and with such a wide moat, it can potentially be a ten bagger.

HD: Home Depot: Generous yield & highly undervalued stock. Better inventory management & scale against LOWES, can potentially provide a high return.

VAR: Varian Medical System. With the coming Obamacare, I expect medical devices companies to do much better than big pharma & HMO.

BAC: Bank of America This can be a volatile stock for 2010, but a great bet on the long term financial health of US. It's retail franchise, consumer banking, mortgage & investment advisory services provides all gamut of financial services.