Join the gym. Stop smoking. Cut out fast food. Be kinder. These are just a few phrases that will be uttered to ring in the New Year. If you’re like me, the resolutions may only last for a short while, but at least you tried, right? Unfortunately for us, change is difficult and it seldom happens that we find a resolution worth keeping. That’s where Anthem Vault’s own John Stuart comes in with his Responsible Resolutions, encouraging you, the reader, to save more money and to make wise investments.
In order to help you become a wise investor and increase profits as a consequence, here are my Top 5 Must-Have Stocks For 2016:
If you don’t know much about this Chinese e-commerce juggernaut, Anthem Vault’s Michael Scott wrote a compelling piece about Alibaba and what he sees for them in the near future. Though 2015 started off slow, there was no greater market presence than Alibaba in the second half of the year. Since the beginning of October, we’ve seen stocks grow by 41% in that short period. Alibaba also happens to be the largest e-commerce site in the world with 1 in 5 Chinese consumers as active shoppers. Alibaba offers a widespread tech market, and with China’s tech-savvy young consumers, they look to increase website traffic and business significantly in 2016. It’s no secret that the buyer is back in control at Alibaba, and with CEO Jack Ma aiming to make the company a global force through the partnerships with tMall, Starbucks and Disney, Alibaba should be one of the top stocks on your watch list.
In 2016, invest in Europe! As the price of the euro continues to trend downward, Europe is on the selling block. Suddenly, gondola rides through Venice, picnics under the Eiffel Tower and a selfie with the Queen’s guard at Buckingham Palace have become significantly cheaper. U.S. tourism to Europe has been and will continue to be on the rise through 2016. As European businesses have cut costs to combat the falling euro, the European Central Bank has been pumping money back into the eurozone in an effort to jumpstart the economy. However, shy away from currency trading. Any money put into the euro falls victim to miniscule profit gains when translated back to the dollar. Between the rise of European tourism, along with businesses cutting costs, my money is on Europe for the foreseeable future.
Very little explanation is needed for the world’s largest coffee enterprise. After arching their caffeine-fueled reach into nearly every corner of the world, Starbucks paid $620 million for Teavana, a deal which closed on the last day of 2012. Teavana has become a world leader in high-end tea production services, enabling Starbucks to control a large majority of the world’s beverage consumption. On top of their coffee and tea production lines, rumors are circling that Starbucks has hopes of selling wine and craft beers during their Starbucks Evenings. The recent partnership with Alibaba has led Starbucks to launch its first online store in China through tMall. Their link to China further enhances their global reach, leading me to believe there is nothing but upside for Starbucks in 2016. The firm hopes to reach a $69.00 share value which would be a 15% increase from the current market value, and approximately 8% higher than the current share record of $64.00
In October, Goldman Sachs listed PayPal on the coveted Conviction Buy list, expecting the company to outperform. They placed a target price of $45.00 on the stock (which is sitting at $36.20 at the end of 2015), leaving more than 25% upside as 2016 approaches. Freed from its eBay shackles, PayPal is on the rise to dominate the paying formats. Though operating independently of eBay, PayPal’s vast community reach is entirely due to its connection with the e-commerce giant. The e-commerce trend is certainly on the rise with more online shoppers than ever before, leaving the likes of PayPal to benefit. At under $40.00, PayPal appeals to all investors, and this is one with which I would certainly ring in the New Year.
- Precious Metals
There is seemingly no greater advice I can give than to invest in precious metals like gold and silver. With gold sitting just north of $1,000/oz and silver just shy of $14.00/oz, incremental buying of precious metals is one of the most sound investment practices to have in your portfolio. Gold and silver have gone through a roller-coaster of change in the last five years, reaching unparalleled highs, and currently a steady low. However, one thing remains certain: at some point, the roller-coaster has to climb upwards. The U.S., Chinese and Russian governments have been buying silver in incredibly high quantities, in an effort to combat any paper currency shortcomings. 2016 is going to be silver’s year, with many believing it will lead gold in upside potential.
Incremental buying of any stock or precious metal is a secure and effective method of safe investing, especially for new investors. Provide yourself with the right tools, watch the market closely, and pay attention to world events to ensure that in 2016, you will be a responsible investor.
Please note that we are not financial advisors and not responsible for your investment choices.