1 High-Yield Dividend Stock for Rising Interest Rates

Do you know what happens to most mortgage REITs when the Federal Reserve increases short-term interest rates? I'll give you a hint: It ain't good. But what if there was an 8% yielding mREIT that actually benefited from rising rates. Oh yeah, that's right, there's is, and it's calledStarwood Property Trust (NYSE: STWD  ) .

Starwood Property is a specialty lender, so unlike other mREITs like Annaly Capital Management  (NYSE: NLY  ) that buy bonds made up of residential mortgages, Starwood Property makes loans to businesses for commercial properties. This uniqueness makes a huge difference when it comes to managing interest rates.

What happens when rates rise? According to the most recent projections from the Federal Open Market Committee -- a branch of the Federal Reserve -- we could see an increase in short-term interest rates as soon as themiddle of 2015.

Because mREITs borrow based on short-term rates -- like the Federal Reserve controlledfederal funds rate -- any increase will make borrowing more expensive and cut into their earnings.

The last time the Federal Reserve increase rates was in 2004. For Annaly, this jacked up their cost of funds and the company's dividend was cut in half. I don't say this to pick on Annaly, in fact, if similar mREITs like American Capital Agency or ARMOUR Residential REIT were public companies at the time it is likely their dividend would have met a similar fate. 

Starwood Property is differentThis will not happen to Starwood Property. In fact, the opposite happens because, as of November 2014, 78% of its loan portfolio has a floating interest rate tied to short-term interest rates. 

Sounds fancy, but all it means is that businesses borrowing from Starwood Property will pay a higher or lower interest rate on their loans depending on where short-term interest rates are at the time. 

The chart above is the smoking gun. It answers the question: If short-term interest rates increase -- specifically the LIBOR benchmark which is influenced by the Federal Reserve -- 1%, 1.5%, or 2%, what would happen to Starwood Property's annual net income?

Looking at the far left of the chart, if short-term rates increase by 1% the company would make an extra $39.9 million (blue), but because its borrowing costs would increase they would pay an extra $22.4 million in expenses (orange). Take the difference between the two and if rates increased 1% Starwood Property would earn a $17.5 million benefit (red line).

The same principles apply if short-term rates were to increase 2%, 3%, 4% and so on. The higher short-term rates go, the bigger Starwood Property's benefit.

Here's the best part Since Starwood Property has an advantage if the Federal Reserve increase rates, it makes sense to assume that if rates fall or stay where they are today the company would underperform. This could not be further from the truth.

As a specialty lender, Starwood Property makes short-term loans -- three to five years in length on average -- for things like building construction or property improvements. Because these loans rollover quickly the company can constantly update their portfolio to best suit the current and upcoming environment.

For instance, if interest rates rates were likely to fall, Starwood Property could align its portfolio with fixed-rate securities. In this case, because the interest rate on the loans would be locked in, falling interest rates would not hurt it at all. In fact, this is exactly what Starwood did in 2010 as 74% of the company's loan portfolio had fixed-rates -- this is compared to just 22% today.

Ultimately, as long as there is demand for Starwood Property's loan products -- which will be somewhat cyclical over time -- the company's flexibility to perform despite interest rates makes the company more versatile than many of its traditional mREIT peers and a great buy today.

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Source Url: http://www.fool.com/investing/dividends-income/2015/01/11/1-high-yield-dividend-stock-for-rising-interest-ra.aspx

Simple Stock Market Investing Beating Strategy 2015

Dr. David Eifrig writes: The education of new investors often follows similar paths...

New investors get interested in the stock market and plan to get rich quick. They think it's just a matter of time before they find some small, unheard-of company that will grow 100 times over, making them rich.

Before long, the investors realize that investing in small-growth stocks is harder than it looks. Yes, occasionally a tiny stock blossoms into a big winner. But it's usually not enough to offset all the other duds. They learn that smart investors buy established quality companies and hold them for extended periods.

 And yet... small-cap stocks as a group actually do outperform large caps consistently over time.

That's an undeniable fact. Historically, putting your money in small-cap stocks has given you a better return over time. Overall, these are growing companies. Wall Street analysts don't pay much attention to them, so there's a better chance they are undervalued.

But you have to do it right. You can't try to cherry-pick the winners. You need a diversified basket of small-cap stocks...
 

Economists Eugene Fama and Kenneth French provide a quality data set to show this.

If you created an annual portfolio of the 30% of stocks that are the smallest on the market and compare it with the largest 30%, the small stocks make a lot more money. One dollar invested in 1990 in small caps would be worth $30.52 today. A dollar invested in large caps would have grown to $12.05.

Taking a longer view, $1 invested in 1926 would be worth $5,203.43 in large caps... but $236,497.39 in small caps.

The typical knock on small-cap stocks is that while they do provide higher returns, their volatility makes them scary investments.

That's only true if you have the wrong time frame.

As you move your investment horizon out, you can become more certain about how your stocks will perform.

Think about it this way... If you buy a stock today, you can't make a reliable prediction about what your returns will be a week from now.

And it's hard to predict what your return will be one year from now. While stocks typically return 6% to 7% per year, the results will fluctuate. You don't know if this year will be a good year or bad year.

But as you stack up the years, the returns will get closer to the expected average. You may have one, two, or three bad years in a row. But over 10 years, things average out.

A study by financial research firm Morningstar suggests that once your holding period extends past 15 years, small caps provide a higher return with less risk than large caps.

For a long-term buy-and-hold investor, small caps make sense.

As you may know, the S&P 500 Index is designed to be a representative sample of the stocks of the 500 largest companies that comprise the bulk of our economy.

But the company that tracks the index, credit-ratings firm Standard and Poor's (S&P), also tracks the S&P 600. This is a collection of 600 small-cap companies, ranging in valuations from $162 million to $3.8 billion.

While these are small caps, they aren't wild speculations. Standard and Poor's maintains criteria to ensure that each stock is liquid and has a degree of financial stability.

The index includes companies you may know, such as shoe maker Skechers (SKX), brewer Boston Beer (SAM), and restaurant chain Cracker Barrel (CBRL).

The stocks in the index exhibit the growth we're looking for. Analysts expect that earnings per share for the S&P 500 will grow 12.8% this year. But the stocks in the S&P 600 are expected to grow earnings 35%.

Just like Fama and French's data, when you compare the returns of the S&P 600 and S&P 500, including dividends, the small-cap stocks give an extra 1.7% return annually.

Over the course of the last year, however, the small-cap index has underperformed larger stocks...

This suggests it's a particularly good time to buy them. Small-cap stocks are due to outperform in the near future to "catch up" to large-cap stocks.

The S&P 600 is just an index though. Standard and Poor's maintains it simply as a reference. But you can invest in funds designed to follow the same methodology and deliver the same returns.

If you've been putting off investing, this is the place to start. A safe, diversified, small-cap fund should outperform stocks. It's the perfect buy-and-hold for those with a long timeframe who are unsatisfied with the low returns available in savings accounts or CDs.

And if you've got a lot of large-cap holdings, a good small-cap fund can provide a much needed boost of growth to your holdings. Plus, given the current state of the economy, it looks like a good time to buy.

Here's to our health, wealth, and a great retirement,

Dr. David Eifrig

P.S. If you sign up for Retirement Millionaire today, you'll learn about the best small-cap fund to own right now. It has an extremely low expense ratio at just 0.14% and tracks the S&P 600 I mention above. For a limited time, you can get 60% off the regular subscription price, along with a money-back guarantee within the first four months.

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2013 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Source Url :http://www.marketoracle.co.uk/Article48977.html

Your 3 Best Investing Strategies for 2015

Racking up big investing victories over the past six years was easy. Now, though, the going looks to be getting tougher. These three strategies will help you stay on the path to your goals.

Should it persist through the current bout of volatility, the stock market rally will be entering its seventh year, making it one of the longest ever; at some point a bear will stop the party. Meanwhile, the Federal Reserve is signaling the end to its program of holding down interest rates and thus encouraging risk taking. And there’s zero chance that Congress will add further fiscal stimulus. In short, the post-crisis investing era—when market performance was largely driven by Washington policy and Fed ­intervention—is over. “As the global risks have receded,” says Jeffrey Kleintop, chief global investment strategist at Charles Schwab, “the focus is going back to earnings and other fundamentals.”

The stage is set for a reversion to “normal,” but as you’ll see, it’s a normal that lacks support for high future returns. For you, that means a balancing act. If you don’t want to take on more risk, you’ll have to accept the probability of lower returns. Following these three guidelines will help you maintain the right risk/reward balance and choose the right investments for the “new” normal.

1) Keep U.S. Stocks As Your Core Holding…

Stocks are expensive. The average stock in the S&P 500 is trading at a price of 16 times this year’s estimated earnings, about 30% higher than the long-run average. A more conservative valuation gauge developed by Yale finance professor Robert Shiller that compares prices with longer-term earnings shows that stocks are trading at more than 50% above their average.
“Given current high valuations, the returns for stocks are likely to be lower over the next 10 years,” says Vanguard senior economist Roger Aliaga-Díaz. He expects annual gains to average between 5% and 8%, compared with the historical average of 10%. Shiller’s numbers suggest even lower returns over the next decade.

That doesn’t mean you should give up on U.S. stocks. They remain your best shot at staying ahead of inflation, especially today, when what you can expect from a bond portfolio is, well, not much. “Stock returns may be lower,” says Aliaga-Díaz, “but bond returns will be much less, so the relative advantage of stocks will be the same.” And the U.S. economy, though far from peak performance, is the healthiest big player on the global field.

Your best strategy: Now is a particularly important time to make sure your stock allocation is matched to your time horizon. “The worst outcome for older investors would be a bear market just as you move into retirement,” says William Bernstein, an adviser and author of The Investor’s Manifesto. A traditional asset mix for someone in his fifties is the classic 60% stock/40% bond split, with a shift to 50%/50% by retirement. If your allocation was set for a 35-year-old and you’re 52, update it before the market does.

On the other hand, if you’re in your twenties and thirties, you should be far less worried about today’s prices. Hold 70% to 80% of your portfolio in equities. The power of compounding a dollar invested over 30 to 40 years is hard to overstate. And you’ll ride through many market cycles during your career, which will give you chances to buy stocks when they’re inexpensive.

2) …But Spread Your Money Widely

With many overseas economies barely out of recession or dragged down by geopolitical crises, international equity markets have been trading at low valuations. And some market watchers are expecting a rebound over the next few years. “Central banks in Europe, China, and Japan are making fiscal policy changes that are likely to boost global growth,” says Schwab’s Klein­- top. Oil prices, which have fallen 40% in recent months, may boost some markets as consumers spend less on fuel and step up discretionary buying.

But foreign stocks aren’t uniformly bargains. The slowdown in China’s economic growth threatens the economies of the countries that supply it with natural resources. Japan’s stimulus program to date has had mixed success, and the reason to expect stimulus in Europe is that policymakers are again worried about deflation.

Your best strategy: Spread your money widely. The typical investor should hold 20% to 30% of his stock allocation in foreign equities, including 5% in emerging markets, says Bernstein. Many core overseas stock funds, such as those in your 401(k), invest mainly in developed markets, so you may need to opt for a separate emerging-markets offering—you can find excellent choices on our ­MONEY 50 list of recommended mutual and exchange-traded funds. For an all-in-one fund, you could opt for Vanguard Total International Stock Index  VGTSX 1.5831% , which invests 20% of its assets in emerging markets.

3) Hold Bonds for Safety, Not for Income

Fixed-income investors have few options right now. Today’s rock-bottom interest rates are expected to move a bit higher, which may ding bond fund returns. (Bond rates and prices move in opposite directions.) Yet over the long run, intermediate-term rates are likely to remain below their historical average of 5%. If you want higher income, your only alternative is to venture into riskier investments.

Your best strategy: If you don’t want to take risks outside your stock portfolio, then accept that the role of your bond funds is to provide safety, not spending money. “After years of relative calm, you can expect volatility to return to the stock market—and higher-quality bonds offer your best hedge against stock losses,” says Russ Koesterich, chief investment strategist at BlackRock. Stick with mutual funds and ETFs that hold either investment-grade, or the highest-rated junk bonds. Don’t rely solely on government issues. Corporate bonds will give you a little more yield.

You may be tempted to hunker down in a short-term bond fund, which in theory will hold up best if interest rates rise. But this is one corner of the market that hasn’t returned to normal. Short-term bonds are sensitive to moves by the Federal Reserve to push up rates. The Fed has less ability to set long-term rates, and demand for long-term Treasuries is strong, which will keep downward pressure on the rates those bonds pay. So an intermediate-term bond fund that today yields about 2.25% is a reasonable compromise. Sometimes in investing, winning means not losing.

Source url:http://time.com/money/3654721/investing-strategies-2015/

5 High Yield Bond Mutual Funds for 2015

For the average investor, high yield bond mutual funds are the best method to invest in bonds rated below investment grade, popularly known as junk bonds. This is because these funds hold a wide range of such securities, significantly reducing portfolio risk. In addition, these funds provide better returns than investments with higher ratings, including government and corporate bonds. Further, because the yield from such bonds is higher than investment grade securities, these investments are less susceptible to interest rate fluctuations.

Below we will share with you 5 top rated high yield bond mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all high yield bond funds, investors can click here to see the complete list of funds.

Loomis Sayles High Income A (NEFHX - MF report) seeks high total return with a combination of high current income and capital growth. The fund invests a minimum of 65% of its assets in fixed income derivatives that are rated below investment grade. A major portion of its assets get invested in fixed income instruments issued by domestic corporate bodies or in US dollar denominated securities approved by foreign corporate organizations. It may also invest a maximum of 20% of its assets in fixed income securities that are denominated in foreign currency, including that from emerging economies. It may also invest in other derivatives such as zero-coupon securities, futures and swaps. This high yield mutual fund has a three-year annualized return of 9.5%.

As of October 2014, this high yield mutual fund held 332 issues, with 3.67% of its total assets invested in US Treasury Note 0.625%.

Lord Abbett High Yield A (LHYAX - MF report) invests a lion’s share of its assets in “junk” bonds or high-yield bonds including corporate debt and convertible instruments. The fund may invest a maximum of 20% of its assets in non-US securities and may invest not more than 20% of its assets in municipal securities. It may also consider senior loans for investment. The fund seeks high total return. This high yield mutual fund has a three-year annualized return of 9.4%.

The high yield mutual fund has an expense ratio of 0.95% compared to a category average of 1.08%.
MassMutual Premier High Yield A (MPHAX - MF report) seeks high total return by investing in high yielding securities. The fund invests major portion of its assets in below grade domestic debt instruments which also include default securities. These debt instruments include corporate bonds, mortgage-backed securities and obligations that are approved by the US government or by its affiliates. The fund is expected to maintain a dollar-weighted maturity that may vary from 4 to 10 years. This high yield mutual fund has a three-year annualized return of 9%.

Scott D. Roth is the fund manager and he has managed this high yield mutual fund since 2010.
RidgeWorth Seix High Yield A (HYPSX - MF report) invests heavily in lower rated debt securities that are expected to provide high yield. These securities include corporate obligations, floating rate loans and other debt obligations. The fund invests in debt securities throughout the globe. It may also invest a maximum of 20% of its assets in investment grade instruments. This high yield mutual fund has a three-year annualized return of 7.1%.
The high yield mutual fund has an expense ratio of 0.81% compared to a category average of 1.08%.


Northern High Yield Fixed Income (NHFIX - MF report) seeks high current income. It invests the majority of its assets in lower rated bonds, commonly known as "junk bonds". The fund may also invest a share of its assets in high quality securities. For a temporary time being, the fund may also invest 100% of its assets in high quality securities in order to take a defensive stance. Although it focuses on acquiring domestic securities, the fund may also invest in foreign securities to a lesser extent. This high yield mutual fund has a three-year annualized return of 7.8%.

As of September 2014, this high yield mutual fund held 208 issues, with 0.75% of its total assets invested in Meritage Homes 7.15%.

To view the Zacks Rank and past performance of all high yield bond mutual funds, investors can click here to see the complete list of funds.

About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank in our Mutual Fund Center.

Source Url: http://www.zacks.com/stock/news/159764/5-high-yield-bond-mutual-funds-for-2015

Could these be the 4 best dividend stocks for 2015?

It’s been a rocky start to the 2015 calendar year for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) with the oil price playing havoc with some of the biggest names in the index. Given the weighting of these constituents, the pressure on their share prices has had a significant effect on the overall direction of the market.

Given the expected imposition of tighter financial regulations as a result of the Murray Inquiry plus continued weakness in iron ore and oil prices, the usual suspects – namely the banks and major miners – could struggle to deliver adequate returns to investors in the coming year.

Couple this scenario with the possibility that the Reserve Bank of Australia will further cut interest rates and solid blue-chip dividend paying stocks could be the key to your portfolio’s performance.

Here are four worth considering…

1. AMP Limited (ASX: AMP): Share price $5.48; forecast dividend of 28.5 cents per share (cps); 70% franked yield of 5.2%.
2. ASX Ltd (ASX: ASX): Share price $36.86; forecast dividend 182 cps; fully franked yield of 4.9%.

3. Telstra Corporation Ltd (ASX: TLS): Share price $5.98, forecast dividend 30 cps; fully franked yield of 5%.
4. Woolworths Limited (ASX: WOW): Share price $29.86; forecast divided 145 cps; fully franked yield of 4.8%.

Here’s an even better bet than the four companies mentioned above.

Given the potential for the market to experience increased volatility in 2015 I'd seriously consider adding the above four stocks to a self-managed super fund that needed to produce income however before you buy these make sure you discover 3 of The Motley Fool's favourite dividend ideas for 2015...

The Australian Financial Review says "good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit." Get "3 Stocks for the Great Dividend Boom" in our special FREE report. Click here now to find out the names, stock symbols, and full research for three of our favourite income ideas, all completely free!

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Source Url : http://www.fool.com.au/2015/01/08/could-these-be-the-4-best-dividend-stocks-for-2015/

5 tech trends to look for in 2015

 


With CES 2015, the world’s largest technology convention, underway in Las Vegas, the top technology trends for the year are becoming clearer.

Wearables go longer

This is one category that’s been hot for a while, and there should be enhanced and improved performance all around. Smartwatches, fitness bands, health trackers and even connected clothing will be joined by sports-focused trackers that go further in collecting and assessing the mechanics of whatever sport they’re designed for. While there’s been plenty of variety already, industry leaders will aim to make their wearable devices more reliable. Look for more integration to give you a better sense of where you’re at.

Homes get smarter

We’re not yet at the point of a digital butler, but the number of connected devices for the home will continue to grow. There are already smart light bulbs, surveillance cameras, garage door openers, door locks and even appliances that can all be controlled through smartphones and tablets — even outside of the home. Expect more of that to continue this year, although what’s been lacking is industry standardization to streamline it all. There are different wireless protocols controlling these devices, and some don’t talk to each other, forcing manufacturers and app developers to consider ways to centralize how you manage them all.

Cars get connected

GM first put pedal to the metal with its in-car 4G LTE connection in 2014, but you can expect others in the auto industry to put SIM cards in their cars this year, too. Paying for another data plan every month (or pay-as-you-go) is going to be a tough sell initially, though the user experience will win out in the long run as prices start to drop. In-car Internet also foreshadows the possibility that data can be shared to help insurance companies better assess their customers. And with more software in today’s cars, over-the-air updates can be pushed directly to your vehicle without having to visit a dealership.

Printers do it all

Arguably one of the most intriguing and exciting technologies is 3-D printing and the idea that almost any basic instrument or piece can be printed on the spot. This category is expected to grow by leaps and bounds this year, with most of the initial applications benefiting businesses and industrial designers. But don’t count yourself out as a consumer because 3-D printers will become more and more affordable in the next few years.

Robotics and voice assistants

There probably won’t be a massive leap forward in 2015, but there will be momentum because robots and personal voice assistants are closely aligned. This isn’t really about a walking robot with a personality, it’s more a case that robotic devices like drones and toys will further blossom. Personal voice assistants on mobile devices still need plenty of improvement, but you can expect to start seeing Apple’s Siri and Google Now to be further integrated into cars, homes and wearables moving forward.

Source Url:http://calgaryherald.com/technology/tech-you/5-tech-trends-to-look-for-in-2015

Top Gainer on the TSX for 2014: Richmont Mines

There’s no doubt that 2014 was a tough year for the resource sector. However, some stocks still managed to record substantial gains, and Canadian gold producer Richmont Mines (TSX:RIC,NYSEMKT:RIC) topped them all.

For 2014, Richmont’s stock gained a whopping 244 percent. So far this year, it’s up another 7 percent and was trading at $3.98 at close of day on Monday.

Certainly that’s nothing to shake a stick at given the relatively disappointing performance of the gold price this year. Speaking to what might have contributed to that rise, Jennifer Aitken, investor relations manager at Richmont, cited a well-managed balance sheet, but also noted that the weak Canadian dollar has actually been a boon for the company’s margins.

“We’re a Canadian producer and all of our operating costs are in Canadian dollars, whereas we sell in US,” she said. “That obviously is very beneficial to us because it helps our margins.”

While the gold price has been languishing below $1,200 per ounce in US dollars, Richmont recorded an average selling price of C$1,406 for per ounce for the first nine months of the year. Michael Gray, mining equities analyst at Macquarie Capital Markets, confirmed that sentiment in a separate interview, and suggested that the benefits are expected to keep rolling in for Richmont and other Canadian miners — he noted that David Doyle, economist and Canadian market strategist at Macquarie, sees the Canadian dollar falling to 75 cents US in 2016.

“It’s a huge part of our thesis on why Canada is a preferred jurisdiction,” he said.

The Island gold mine

Richmont is producing at the Island gold mine in Ontario and at the Beaufor and Monique mines in Quebec. Most of the excitement surrounding the stock this year has been due to the Island gold mine and the recently discovered high-grade Deep C zone below the existing resource, which currently sits at about 1.1 million ounces at roughly 10 grams per tonne gold in inferred resources.

“Essentially, it’s the sweet spot of having a producing mine with a new discovery over 1 million ounces,” stated Gray.

Adding to that, Aitken pointed out that since the resource is directly below the current Island gold operations, there’s no permitting required, and staffing requirements are already taken care of, meaning that the cost of development will be significantly lower. ”It’s literally an extension of where we’re operating. It’s just further down,” she said.

The company is looking to move forward quickly at Island Gold Deep, and released an accelerated and expanded 12-month development plan earlier this year. While Aitken noted that heavy investments at Island mean the company won’t be cash-flow positive next year, she stated that investors have responded positively to the plan so far and that investments in 2015 will help position the mine for future growth.

Perhaps more importantly, the company consolidated its ownership of the Island gold mine earlier this year, eliminating some “market hesitancy” and spurring a rerating by many analysts, according to Aitken.

“That was an overhang for the stock,” said Gray, “and once that was removed, there was a clear path with 100-percent interest. So that was important.”

Finally, both Aitken and Gray pegged the appointment of Richmont’s new CEO, Renaud Adams, as an important factor in the company’s share price performance last year. Adams previously served as president and COO at Primero Mining (TSX:P) and as senior vice president, Americas operations, at IAMGOLD (TSX:IMG). With Richmont, Gray suggested that the size is right for Renaud.

“It’s a size of company where with his skill set … he can really move the needle. So it’s a very good fit for him.”

In terms of what’s on the horizon for the miner in 2015, Gray is looking forward to the “first real production” from the Deep C zone, as he predicts that could “contribute to higher grades and presumably lower operating costs incrementally throughout the year as they expand production to depth.” He’s also looking forward to drill results next year that could expand the zone, which he says “could be very significant,” and he expects to see a revised resource estimate for Deep C.

All in all, 2014 was quite a year for Richmont, and Gray expects the company’s strong performance to continue in 2015. ”It’s one that we think will continue to outperform,” he said. “We’ve got a $5 target.”

Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article. 

Editorial Disclosure: Richmont Mines is a client of the Investing News Network. This article is not paid-for content.

Source Url:http://goldinvestingnews.com/48446/richmont-mines-top-gainer-tsx-2014-ric-canada-producer.html

3 Unique and Unusual Tips to Be Financially Fit in 2015

My daughter is repeating everything I say, I'm finding more gray hair and the wonderful holiday treats are making my pants tighter and tighter. It must be time to make some New Year's resolutions so we can get our lives back on track. Whenever you read articles on becoming financially fit, you read about budgets, planning, monitoring and other boring crap. Worry not, I won't mention any of these terms. I promise. So here are 3 unique and unusual tips to be financially fit in 2015!

1) Play Dead

I'm almost 100% certain that you've never heard that as an investment strategy before. Fidelity Investments has done a study as to which accounts had done the best at Fidelity. And what they found was that the best performing accounts were often "dead" accounts. No the owners weren't dead but they were the accounts of people who forgot they had an account completely.

Unfortunately the average investor is overly emotional and typically buys high and sells low. Needless to say this is a bad investment philosophy and the chart below from Rich Bernstein shows just how terrible you are at investing!

So what's the moral of the story? One choice is to hire an investment manager who will do better than you. The second choice leads us to our second point.

2) Tax Yourself

Before you stop reading which I'm sure the word tax makes you want to, just hear me out. We all hate paying taxes to Uncle Sam but we don't have a choice as they are automatically deducted from our paycheck. So here's the rub. You have to automatically transfer 5, 10 or 20% of your paycheck to an investment account every month. Have the investments automatically invest (or go to an investment advisor who will invest it for you) and then play dead. If you follow this strategy you too can be a multi-millionaire.

This brings us to the story of Mr. Theodore Johnson who started out as a driver for UPS and never made more than $14,000 a year in his life. He taxed himself to the tune of 20% and poured it back into UPS stock. By the time he was old and gray, his investment account totaled more than $70 million! So remember, it doesn't matter how much you earn, you too can become a millionaire if you play your cards right.

3) Buy Experiences, Not Products

You often hear that money can't buy happiness. However behavioral science begs to differ. Research shows that money can make us happier, but only if we spend it in particular ways. Author Michael Norton, an associate professor at Harvard Business School, describes it like this:

One of the most common things people do with their money is get stuff. But we have shown... in research that stuff isn't good for you. It doesn't make you unhappy, but it doesn't make you happy. But one thing that does make us happy is an experience.

So spend your hard earned dollars wisely.Don't buy the latest handbag, car or TV. Buy an experience that you can draw on for years to come. Take a trip that will change your life for the better. Expand your worldview. Backpack around Europe with friends visiting seven countries in thirty days. Sip Sangria in aPlaça Reial in the middle of Barcelona and when you ask the waiter to take your picture, you wind up with a photo of the waiter instead and your friends in the background. Now that is worth a lifetime of memories.

I hope you enjoyed my 3 unique and usual tips to be financially fit in 2015. I hope that you create some incredible memories in the New Year!

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