Bonds in 2013 finally got their comeuppance. After a long, pleasing ride of income + price gains, the bond market decided the party was over. It only took four months for the 10-year U.S. Treasury note to drop the equivalent of over five years��interest. All but the shortest maturities suffered similar fates.
So why should we expect that we��e safe again? Couldn�� 2013�� drop be the harbinger of worse to come? Like gold, mightn�� we be entering a secular bear market in bonds?
Here are the five reasons why bonds can be bought now with confidence and safety:
1. The bond market is the premiere measure of what�� to come
Unlike with stocks, professional bond investors are notorious for keeping an unbiased, critical eye on what�� happening ��particularly what could go wrong. The reason is that bonds have a skewed return outcome ��the expected and maximum return over a bond�� life are the same. Buy a bond with a 3% yield-to-maturity and hold it to maturity ��if all goes well, the return is 3%. However, let something go awry and that return is in jeopardy.
Hot High Tech Companies To Buy Right Now: Metro Holdings Limited (M01.SI)
Metro Holdings Limited, together with its subsidiaries, engages in the property development and investment, and retail businesses primarily in the People�s Republic of China, Indonesia, and Singapore. It operates in two segments, Retail and Property. The Retail segment operates a chain of department stores and specialty stores, which offer a range of merchandise, fashion accessories, and casual women�s wear. This segment serves customers through a chain of four Metro department stores; eight Monsoon/Accessorize/M.2 specialty store in Singapore; and eight department stores in Indonesia. The Property segment engages in leasing shopping and office spaces; and investing in property-related businesses. This segment has interests in 143,000 square meters of retail and office properties in Beijing, Shanghai, and Guangzhou. Metro Holdings Limited was founded in 1957 and is based in Singapore.
Hot High Tech Companies To Buy Right Now: USA Mobility Inc.(USMO)
USA Mobility, Inc. provides wireless communications solutions to the healthcare, government, enterprise, and emergency response sectors in the United States. The company provides one-way and two-way messaging services. One-way messaging consists of numeric and alphanumeric messaging services. The numeric messaging services enable subscribers to receive messages that are composed entirely of numbers, such as a phone number. The alphanumeric messages may include numbers and letters which enable subscribers to receive text messages. Its two-way messaging services enable subscribers to send and receive messages to and from other wireless messaging devices, including pagers, personal digital assistants and personal computers. USA Mobility also offers voice mail, personalized greeting, message storage and retrieval, and equipment loss and/or maintenance protection to its one-way and two-way messaging subscribers. In addition, the company provides mobile voice and data services t hrough third party providers, which include BlackBerry devices and global positioning system location applications. Further, it offers machine to machine telemetry solutions for various applications that include asset tracking, utility meter reading, and other remote device monitoring applications. USA Mobility serves businesses, professionals, management personnel, medical personnel, field sales personnel and service forces, members of the construction industry and construction trades, real estate brokers and developers, sales and service organizations, specialty trade organizations, manufacturing organizations, and government agencies. The company is based in Springfield, Virginia.Advisors' Opinion:
- [By Sally Jones]
USA Mobility Inc. (USMO): Reduced
Up 26% over 12 months, USA Mobility has a market cap of $307.81 million; its shares were traded at around $14.22 with a P/E ratio of 13.10. The dividend yield of USMO is 3.52%.
Best Small Cap Stocks To Own Right Now: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.Advisors' Opinion:
- [By Adam Levine-Weinberg]
BlackBerry's decision to jettison the PlayBook is a good one. The device never had a chance at replicating the user experience Apple (NASDAQ: AAPL ) created with the iPad, because of a lack of developer support. With Android vendors including Amazon.com (NASDAQ: AMZN ) and even Google (NASDAQ: GOOG ) itself selling high-quality 7-inch tablets for $200 or less, it became virtually impossible for competitors (aside from Apple) to make money in this market.
Hot High Tech Companies To Buy Right Now: Shaw River Resources Ltd(SRR.AX)
Shaw River Manganese Limited engages in the exploration and development of manganese projects in Australia, Ghana, and Namibia. It holds interests in the Otjozondu project located in Namibia; the Baramine project located in Pilbara, Western Australia; and the Butre project located in Ghana. The company was formerly known as Shaw River Resources Limited and changed its name to Shaw River Manganese Limited in May 2011. Shaw River Manganese Limited is based in West Perth, Australia.
Hot High Tech Companies To Buy Right Now: Becton Dickinson and Company(BDX)
Becton, Dickinson and Company, a medical technology company, develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. The company?s BD Medical segment produces medical devices that are used in various healthcare settings. This segment?s products include needles, syringes, and intravenous catheters for medication delivery; prefilled IV flush syringes; syringes, pen needles, and other drugs to treat diabetes; prefillable drug delivery systems; anesthesia needles and trays; sharps disposal containers; and closed-system transfer devices. Its BD Diagnostics segment provides products for the safe collection and transport of diagnostics specimens, as well as instrument systems and reagents to detect various infectious diseases, healthcare-associated infections, and cancers. This segment?s products consist of integrated systems for specimen collection; safety-engineered blood collection products and systems; automated blood culturing systems; molecular testing systems; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays; and plated media. The company?s BD Biosciences segment produces research and clinical tools that facilitate the study of cells and their components. This segment?s products comprise fluorescence-activated cell sorters and analyzers; monoclonal antibodies and kits for performing cell analysis; reagent systems for life science research; cell imaging systems; laboratory products for tissue culture and fluid handling; diagnostic assays; and cell culture media supplements for biopharmaceutical manufacturing. It markets its products through independent distribution channels and independent sales representatives to healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry, and the general public. The company was founded in 1897 and is headquartered in Franklin Lakes, New Jersey.Advisors' Opinion:
- [By Russ Krull]
Becton Dickinson's (NYSE: BDX ) second-quarter earnings report is a good reason to give the company a onceover with a SWOT -- Strengths, Weaknesses, Opportunities, and Threats -- analysis. Becton met analysts' expectations for revenue and earnings beat estimates.�The market liked the report, injecting more than $2.50 to the share price and send sending it to a new high.
- [By Rich Duprey]
Medical device maker�Becton, Dickinson� (NYSE: BDX ) gave investors a shot in the arm today reporting strong financial results for its second fiscal quarter and raising its guidance for the full year.
- [By Geoff Gannon]
Someone who reads my articles sent me this question: My��uestion has to do with the type of investments you tend to put your energy toward. Evaluating a net-net is a whole lot different than evaluating a company that has a competitive advantage and trades at much higher multiples. To me, the net-net evaluation process is a whole lot more straightforward, as there are fewer intangibles (if any) and less prediction about the future involved. I don't have to worry about whether GTSI (GTSI) has any competitive advantage ��I know it doesn't. Then again, I look at a company like Becton Dickenson (BDX) and I see a highly predictable company with a decent moat selling at a reasonable price. I can look at BDX and figure I might earn 10-15% annually over a long time frame. That's really different from thinking about investing in a net-net where I can see how it's 30-50% undervalued now, but it's not something I'm going to hold onto for decades. It's more of a matter of waiting for that one-time "pop" that will happen sometime in the next 1-5 years. How do you decide where to put your energy?
Hot High Tech Companies To Buy Right Now: Ztest Electronics Inc (ZTE.V)
ZTEST Electronics Inc., through its subsidiary, Permatech Electronics Corporation, offers electronic manufacturing services in Canada. The company engages in designing, developing, and assembling printed circuit boards and other electronic equipment. Its services also include materials management, and printed circuit board design and testing. The company serves customers in the medical, power, computer, telecommunication, wireless, industrial, and consumer electronics markets. ZTEST Electronics Inc. was founded in 1960 and is based in North York, Canada.