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OffbeatWhat the smart money is buying as the market tanks

02:55  07 december  2018
02:55  07 december  2018 Source:   cnn.com

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The smart money in the market is perceived as being invested by people who have a better understanding of the market or access to information Smart money is cash invested or wagered by those considered to be experienced, well informed, "in-the-know" or all three. Although there is little

Even when it comes to markets that might take time to move or have longer cycles, investments can often turn into realized profits and quick gains by leveraging the right strategies. Dirty Little Secrets: What the Credit Reporting Agencies Won\'t Tell You. Buy From.

What the smart money is buying as the market tanks© Photo Illustration: Shutterstock / CNN

The Dow and S&P 500 are now both in the red for 2018, and investors have few places to hide as the stock market tanks. But savvy people are finding some pockets of safety.

Gold, an investment that often shines during times of financial stress, is up nearly 4% so far in the fourth quarter while the S&P 500 and Dow have both plunged nearly 10% and the Nasdaq has plummeted almost 13%.

The rise in gold prices has been good news for miners too. Newmont (NEM), which is in the S&P 500, is up nearly 10% since the end of September. The VanEck Vectors Gold Miners ETF (GDX) has gained about 7%.

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Said another way, the " smart money " is not buying right now. Now, as I mentioned earlier, Jared and his readers have made money from this idea before. Last time around, Jared and his readers bought puts on the S&P 500 ETF (NYSE: SPY ) and made out like bandits (an 18.5% gain in one day).

Said another way, the " smart money " is not buying right now. Now, as I mentioned earlier, Jared and his readers have made money from this idea before. Last time around, Jared and his readers bought puts on the S&P 500 ETF (NYSE: SPY ) and made out like bandits (an 18.5% gain in one day).

Utility stocks and real estate investment trusts, which both pay hefty dividends, have held up well too. The Dow Jones Utilities Average has gained more than 3.5%. The SPDR Dow Jones REIT ETF is up more than 1%.

"Owning exciting things was more fun and profitable than owning good things," said Jon Cheigh, portfolio manager of global real estate with Cohen & Steers. "But high momentum stocks have started to come under pressure and real estate valuations are finally starting to look more attractive."

Yield plays in focus

Another clear sign investors are craving anything that can guarantee them a bit of a return: Investors keep rushing into bonds, despite the yield on the 10-Year Treasury falling to just 2.85%. The iShares 20+ Year Treasury Bond ETF (TLT) has gained nearly 2.5% this year.

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Smart money refers to investments or transactions made by ‘expert’ investors who are said to have a comprehensive understanding of financial markets – they can identify or foresee trends before others. Investors who do not spot or predict investment trends, i.e. those who try to ride the trend after the

The smart money is buying Facebook; it makes sense to buy Facebook on pullbacks in the buy zone. Read: Facebook earnings lead to praise of Those not in tech stocks may consider waiting for dips in the buy zones to initiate positions. Buy zones are dynamic and change based on market conditions.

Neil Dwane, managing director of Allianz Global Investors, said these more conservative investments might be coming into favor now because investors are realizing that growth in the US this year might be as good as it gets for awhile.

That's because the Federal Reserve has been raising interest rates, the global economy is slowing and the sugar rush from lower taxes and other federal government stimulus should begin to fade.

"People have started to think, 'How much better can the news really get?' The reasons to be as bullish are becoming less evident." Dwane said.

Investors chowing down on food stocks

Another area of the market has held up noticeably better as of late too: food and beverage stocks.

Many of them, like the utilities, tend to pay attractive dividends. But a lot of food and drink companies are staples or affordable luxuries -- the types of things people will continue to buy even if the economy heads south. People may even still pay up for a $5 latte but they aren't going to buy a new $50,000 car.

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Millennials have held back on buying homes for a variety of economic reasons since 2008. The millennial generation will not carry the housing market to new highs the way the boomers did. But the “ smart money ” is retreating from the highest-end real estate in bubble-cities like London, Manhattan

That is why the Smart Money Flow Index dropped so fast during the stock market ’s correction from January-February 2018. This chart shows the spike in volume during last half hour of trading day. Trading soars in the last hour not because the “ smart money ” is buying and selling.

Starbucks (SBUX) has been one of the better performers in the S&P 500 for the past two months. Shares are up nearly 20%.

SPAM producer Hormel (HRL), frozen french fry company Lamb Weston (LW) and spice maker McCormick (MCK) have also been top gainers in the S&P 500 during the fourth quarter. So have McDonald's (MCD) and Coca-Cola (KO).

So it looks like in these uncertain times for the markets and economy, eat, drink and be merry is one way for investors to profit.

Related video: Why oil is in a bear market

China Is So Desperate for Pork That It's Buying American Again.
A disease sweeping through Chinese hog herds is helping negate the effects of the trade war for American farmers, with U.S. pork sales to the Asian nation back to levels before tariffs were introduced. China was the third-largest buyer of pork in U.S. Department of Agriculture weekly data released Thursday. The 3,300 metric ton-purchase was the most since February, a month before China imposed tariffs on U.S. pork. Hog futures rose 4.4 percent in Chicago, the most in two weeks. © Bloomberg “This is a game changer,” said Dennis Smith, a senior account executive at Archer Financial Services Inc.

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