The Motley Fool's Weekly Editors' Picks
Jul 14th 2012 8:36AM
Updated Jul 14th 2012 8:38AM
Fools were out and about this past week in an investing world jam-packed with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.
Are You Ready for a China Implosion?
Investors have turned to China for growth, but it's not a set-and-forget strategy. China is slowing, and "investors around the world need to examine their investing strategies closely to determine just how exposed they are to possible Chinese economic troubles down the road," Fool analyst Dan Caplinger wrote.
Inside China, Internet giant Baidu (NAS: BIDU) has lost 30% from a year ago, Dan reported, and has lost almost a quarter of its share price just since April as investors have gotten worried about its prospects. Outside China are companies like Brazil's Vale (NYS: VALE) , which makes money off of Chinese demand for raw materials. Vale "now faces the scary prospect of a slowdown that could wipe out much of its business," Dan wrote.
Investors can't bail on China stocks, but they need to keep an eye on the changing situation, Dan advised.
Read the article for more insight on sectors that could take a hit from slowing China growth.
5 Tips for Energy Investors
Fool analyst Aimee Duffy points out that investing in energy companies is not for the idle. "Perhaps there was a time when you could hold ExxonMobil (NYS: XOM) for 20 years and not think about it, but those days are over," she wrote. "Revisit your investing thesis often, factor in the micro and the macro, and make your buy, sell, or hold decision again and again."
One of Aimee's tips for energy investors involves mining the companies for information and insight. For instance, BP and ExxonMobil publish world energy outlooks, and Baker Hughes tracks global rig counts. If you want to tap into the wealth of ExxonMobil information, start at its corporate website. Click around from the "energy & technology" tab. The companies can help you keep up with what's happening in the bigger picture and how that affects individual companies, Aimee noted. ExxonMobil also gets a nod in the following story about strong dividend stocks.
Read Aimee's article for more about how to invest successfully in the energy sector.
The Best Dividend Stocks in the Dow
"I'm thinking, with the economy looking like it's going to continue to sputter along, now is a great time to put the strongest dividend stocks in your portfolio," Fool advisor David Meier said. He has an easy favorite Dow Jones dividend stock: Intel (NAS: INTC) , which yields 3.4%. The dividend is growing fast, David said, and the company has lots of cash flow. It's also going after the smartphone chip market, and "that's going to be a nice capital appreciation option," he said.
David and John Reeves purchased shares of Intel last month for the real-money portfolio they manage for Fool.com. John likes its income and growth attributes. "It's not just some sleepy blue chip," he said.
Watch the video to see what else David and John had to say about strong Dow dividend stocks, including Procter & Gamble (NYS: PG) , with a 3.7% yield. "More importantly, it generates tons of cash that it can use to reinvest in products, to increase the dividend, or repurchase shares," David noted.
If dividend stocks are your thing, check out The Motley Fool's free report detailing how you can "Secure Your Future With 9 Rock-Solid Dividend Stocks."
The article The Motley Fool's Weekly Editors' Picks originally appeared on Fool.com.Fool online editor Kris Eddy owns no shares of any stocks mentioned in this article. The Motley Fool owns shares of ExxonMobil, Intel, and Baidu. Motley Fool newsletter services have recommended buying shares of Baidu, Procter & Gamble, and Intel. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.
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