6 Must-Have Stocks for Your Portfolio

In This Issue: 6 Must-Have Stocks for Your Portfolio Get the Growth and Income You Need Australian Businesses Are Spending Again Bank Big Payouts from the Pipeline Shortage America's energy boom is in full swing. We're pumping more oil and natural gas from the ground than ever thought possible. But there's a problem with the massive supplies. They're putting a strain on the companies that move around and store all this fuel. That's bad news if you're a driller and you have to throttle your output because you have no place to put it. But it's exceptionally good news if you own the six stocks I've pinpointed. They're all running at full capacity and making a mint. And thanks to the way they're structured, they have to pay a majority of what they make out to shareholders. Follow this link for their profitable details. 6 Must-Have Stocks for Your Portfolio 9/1/2014 We don't want to alarm you, but you're missing out on one of the biggest, most ignored bull markets ever. And it's not the one on Wall Street that the pundits crow about day in and day out. It's a hidden slice of the market where ordinary investors—like you—can still make a fortune. And it's a story we're pretty sure you're not hearing about. Because unless you were combing through the finer points of Section 7704 of 1986's tax code, you probably missed the secret creation of a new, highly profitable type of business. But there's nothing subtle about the profits investors across the country have been pocketing—since 2000, these companies, on average, have outperformed the S&P 500 by 427%. Impressive, for sure—but it's only a fraction of what's possible. In a moment, we'll show you how to get your hands on a just-released special report that reveals 6 stocks in this little-known sector that are crushing the S&P 500 by 513% so far this year. They've already delivered total returns of 1,024% to a select group of investors—good enough to turn $5,000 into $51,200! We call these 6 winners "Bedrock Stocks," because we believe they should form the foundation of every investor's portfolio. And here's the really exciting part: they're just getting warmed up. That's because they're an essential part of … America's Energy Bonanza Unless you've been living under a rock for the past eight years, you've heard about the massive amounts of oil and natural gas being produced in our country. It's all thanks to a process known as hydraulic fracturing, or fracking. Exploration companies that had the know-how—and the guts—to jump in before big oil got wind of what was going on made fortunes for their investors. Abraxas Petroleum jumped 894% when it used fracking to unlock massive amounts of oil and gas … Continental Resources rose 717% … and Magnum Hunter Resources even soared 4,458% from its low to its high. And the Energy Information Administration (EIA) says the party is just getting started. Here's the thing, though. The EIA is most likely … Wrong—but in a Good Way Chances are, the boom is going to be even bigger than they say. That's because the government has consistently underestimated the amount of resources we have. Consider this: in 1995, the United States Geological Survey believed there were 151 million barrels of recoverable oil in North Dakota's Bakken formation. Today, they estimate that the Bakken contains up to 7.4 billion barrels, or 49 times what they thought was there in 1995. But they haven't just been wrong about the Bakken. In 2002, the government figured there were 1.9 trillion cubic feet of natural gas in the Marcellus deposit on the East Coast. Six years later, Terry Englander, a geosciences professor at Penn State University, estimated there could be as much as 500 trillion cubic feet. So why can't the government get it right? Shifting technology. The truth is, exploration technology advances quicker than what the government can keep up with. The bottom line is this: America's energy boom is just getting started. But if you're thinking that the 6 Bedrock Stocks we're going to show you are drillers, think again. The time to get in on exploration companies was years ago, when share prices were low and upside was almost limitless. Now these massive supplies are already "baked in" to their share prices. The good news is that none of these 6 companies owns a single well. The best news is they have what we consider to be… A Nearly Perfect Business Model We're not going to beat around the bush here. We're talking about master limited partnerships (MLPs). MLPs are the by-product of an obscure section of the 1986 Tax Reform Act passed by the Reagan administration. So what's so special about them? In a nutshell, they don't pay corporate taxes. That's great for them, but here's what makes them special for you. In order for an MLP to avoid paying taxes to Uncle Sam, it has to get 90% of its income from producing, processing or transporting natural resources like oil and natural gas. With no corporate taxes to pay, this means bigger payouts to investors. As a result, some MLPs yield more than 15%—and even the average MLP yields nearly three times the S&P 500. What's more, the IRS considers up to 90% of what an MLP pays out to you as a return of capital. Translation: Most of the money you get from each payment is tax-deferred until you sell. So if you hold your MLPs for the long term, you could put off these taxes until well into the future. Maybe forever. We know that sounds too good to be true, but it is. And to top it off… MLPs Are "Tailor Made to Exploit the American Energy Boom" If you haven't heard about MLPs before and you're wondering why, the answer is pretty simple. MLPs are the unsung heroes of the energy business. They're pipeline companies. They're shippers. They're natural gas and oil storage companies. They're refineries. They're companies that are, first off, guaranteed to make money no matter what oil and gas prices do. But they're also guaranteed to make more money as the production of these resources grows. Think about it: pipelines, shippers, storage facilities—they're all throughput businesses, like toll roads for energy producers. The more oil and gas drillers pull from the ground with their new technologies, the more oil and gas they need transported, stored and refined. That's why… No other investment is tailor-made to exploit the American energy boom like MLPs. So without further ado, here's how to… Start Profiting From Our 6 Favorite MLPs Now Now we'd like to send a special invitation your way—an opportunity to get in on the 6 MLP picks in that special report we mentioned earlier. It's called "6 Bedrock Stocks to Own Right Now." These high-powered recommendations come from Igor Greenwald, chief investment analyst at our MLP Profits advisory. He has exhaustively researched these 6 MLPs, and we'd be delighted to send you his exclusive report, which gives you his latest analysis and complete investing guidance on each one. It's yours free just for taking MLP Profits for a no-risk 90-day test run. We can't wait to help you start profiting from these powerful—and often overlooked—investments. But we must warn you: It took a lot of convincing to get our publisher to let us release these 6 top secret picks in a free report, so we can't guarantee this offer will be around for long—and we don't want you to miss your chance. Don't hesitate. Click here to grab your copy of this one-of-a-kind report now. Editor's Note: If you've been looking for a way to profit from America's energy boom without taking big risks, look no further. The picks Igor shares in this just-published report have already delivered long-term gains of 88%, 291%—even 511%! And they're primed to put up numbers like that again. Now your copy is just waiting for you to download it. What are you waiting for? Go here to get it now! The New "Fracking" Revolution Massive amounts of oil and natural gas have been produced in the U.S. – thanks to a process called "fracking." In 2000, we produced 200,000 barrels of oil a day. Thanks to fracking, we are closing in on 2 million barrels a day – 10 times the amount! Latest reports from the Energy Information Administration show there are 223 billion barrels of oil and 2,431 trillion cubic feet of natural gas. Goodbye, sheiks. Hello, America. I have 6 "bedrock" energy companies leading the new fracking revolution. They're turning every $5,000 invested into $50,000! The time jump is NOW. Go here. Get the Growth and Income You Need 8/29/2014 By Philip Springer As you approach or live in retirement, it usually becomes necessary to generate income from your investments for expenses. Achieving that goal poses a major challenge in this era of miniscule savings rates and rock-bottom bond yields. At long last, the Federal Reserve is planning to start raising short-term interest rates in 2015. This will be the Fed's first rate hike since December 2008, when the federal funds rate fell to zero-0.25%. Nevertheless, short rates will remain extremely low.While longer-term yields may rise, they're also likely to stay depressed. Various reasons include a sluggish global economy and strong investor demand for income in a yield-starved world.Currently, the benchmark 10-year US Treasury issue pays only 2.4%, but that's higher than the yields on most other government bonds around the world. Other fixed-income vehicles pay somewhat higher yields, with varying degrees of risk. These dynamics continue to help make dividend stocks the best investment alternative. Many pay current yields higher than those of Treasury securities, with the probability of future dividend hikes and good capital-appreciation potential over time. These six guidelines will help you pay for your living expenses and safeguard your financial security: #1: Invest as much as you can in growth-oriented investments. There's no magic formula. It depends on your income needs, your risk tolerance and market conditions. If you're in or near retirement and in good health, you may well live another 20 or 30 years. Despite periods of extreme market volatility, history shows that the surest way to build a large nest egg is to invest as much as possible in equities. Investments that provide little or no growth suffer from diminishing purchasing power, even in these low-inflation times. Worse, in a regular account, investment income from cash equivalents and non-municipal bonds is heavily taxed, at ordinary rates plus any state income taxes. But the need to invest for conservative growth doesn't mean you should buy and hold through thick and thin. You need to make adjustments for market conditions, lowering your equity allocations when prices rise to dangerous levels or when adverse market conditions heighten the probability of a sharp decline. #2: Adapt your portfolio to changing needs. If you'll need cash for living expenses within the next several years, you've got to minimize your risk with some of your assets. The greater the percentage of your portfolio you use for living expenses each year, the more you need to rely on income-producing assets, such as bonds and high-yield equities. Another approach: Set aside three to five years' worth of living expenses. Then invest the rest, mostly in equities, as market conditions allow. Suppose you estimate you'll need $150,000 from investments for expenses over the next three years. Keep that portion primarily in cash equivalents and short-term bonds or funds. Yes, your yield will be low. But capital preservation is the key. #3: Make changes gradually. A common mistake income-seeking investors make is to sell equity investments that have served them well. This needlessly creates capital-gains taxes and sacrifices growth potential. But if you plan ahead, there usually will be no reason to sell or buy except on an investment's merits. As you sell investments, you can replace them with others that will better meet your long-term needs. For instance, if you sell a growth vehicle that no longer offers good potential, replace it with a conservative total-return investment that pays more income. #4: Sell assets for income without creating a heavy tax burden. In general, you should sell assets in your currently taxable accounts first. First, take dividend income and fund distributions in cash instead of reinvesting them. You pay tax on these payouts anyway. Next, sell investments with the highest cost basis and therefore low or no taxable gains. In this category are bonds, bond funds and cash equivalents. And if you unload losing investments, you can offset your tax bill on any gains you've taken on others. Finally, if you do sell long-term winners, your capital-gains tax will be 20% or even much less. #5: Keep tax-deferred accounts intact as long as possible. Distributions are taxed at ordinary rates. Until you reach the deadline for mandatory withdrawals, draw cash from your currently taxable accounts. Retirement-account assets will continue to grow unhindered by taxes. Later, you can tap your retirement accounts, which will have enjoyed longer tax-deferred growth. #6: Consolidate your portfolio. Over time, it's only natural to accumulate many investments. But it becomes difficult to adequately monitor a large number. And your portfolio is unlikely to perform up to its potential or meet your needs if you have so many holdings. Start weeding out lower-quality investments and build your stake in the better ones. Consider setting a minimum requirement for each investment, such as $5,000 or $10,000, or 2%-3% of your portfolio. This will help you decide whether an investment is good enough to increase or whether you should get rid of it. This article originally appeared in the Mind Over Markets column. Never miss an issue. Sign up to receive Mind Over Markets by email. The Top Six Stocks to Own Right Now So far this year, these six stocks are up 6 times more than the S&P 500. Plus they've delivered long-term gains of 88%, 291% and even 511%. We'll release our next recommendation soon to a select group of investors. To learn how you can get your name on the list, simply click here. Australian Businesses Are Spending Again 8/29/2014 By Ari Charney Business confidence recently surged to its highest level since the euphoria that coincided with the conclusion of Australia's federal elections last September. But the outlook for business investment remains mixed, though the second quarter finally saw a much-needed lift in capital spending. According to the Australian Bureau of Statistics (ABS), total capital expenditures rose by a seasonally adjusted 1.1 percent quarter over quarter, to AUD37.65 billion. The consensus forecast among economists surveyed by Bloomberg had been for spending in this area to drop by 0.9 percent, so this was an important beat. Additionally, the first-quarter number also improved from what was initially reported, with a revised decline of 2.5 percent versus the original report of a fall in spending of 4.2 percent. Despite the relief from this recovery in spending, it should still be noted that capital expenditures are down 4.0 percent from a year ago. Second-quarter spending was driven by investment in buildings and structures, which increased 2.0 percent quarter over quarter, to AUD25.3 billion. Unfortunately, investment in machinery and equipment, an area we've been closely monitoring, declined by 0.9 percent, to AUD12.4 billion. Even so, there was at least one other significant bright spot. Although the peak in mining investment is past, industry spending surprised economists with a 0.2 percent increase, to AUD20.6 billion. Analysts had expected a sharp drop in sector spending. On the other hand, capital spending by manufacturers fell 6 percent, to AUD2.1 billion. And the outlook for the coming year isn't all that reassuring. Capital spending for fiscal-year 2015 (ending June 30) is expected to fall by 10.2 percent year over year, to AUD145.2 billion, based on a survey of businesses by the ABS. Of course, that doesn't mean the situation can't change. After all, the aforementioned jump in business confidence appears to have occurred in the weeks after the ABS survey. Still, it does show that the Reserve Bank of Australia's (RBA) hope for the non-mining sectors to take over leadership of the country's economy still faces significant hurdles. RBA Governor Glenn Stevens has recently asserted that the country's policymakers need to do more to revive the "animal spirits" of the entrepreneurs who help drive economic growth. A look at the short-term and medium-term picture underscores these challenges. Over the trailing three-year period that ended June 30, private capital expenditure grew at an average rate of 1.8 percent per quarter. But over the trailing year, spending in this area has declined by an average of 1.0 percent per quarter, with the second quarter's performance a welcome rebound from the swoon in spending over the prior six-month period. So what does capital spending look like when an economy is firing on all cylinders? As the resource boom got underway, private capital expenditures averaged a robust 5.9 percent per quarter, over the two-year period from mid-2010 through mid-2012, peaking at 14.0 percent in the third quarter of 2011. However, there is some disagreement among economists over whether the ABS statistics fully reflect the transition underway in Australia's economy. For instance, The Australian cites Barclays chief economist Kieran Davies' assertion that the ABS survey does not include key sectors such as health and education, and that ABS data also captured less than 40 percent of total service sector investment. "Spending outside of the scope of the survey has been robust over the past couple of years, growing at a roughly 10percent annual rate," Mr. Davies said. He believes that actual spending could rise by 9 percent this fiscal year, thanks to a 12 percent jump in capital expenditures in the service sector. So even if the official data are cause for some gloom, the economy's actual performance could prove surprising to the practitioners of the so-called dismal science. This article originally appeared in the Down Under Digest column. Never miss an issue. Sign up to receive Down Under Digest by email. The One Investing Story You're Not Hearing About Since 2000, one group of companies has been pounding the S&P 500 returns by 427%! Impressive, for sure, but very rarely are they discussed publicly. But I have 6 companies you may want to explore. They are crushing the S&P 500 by 513% so far… this year! Total returns are 1,024%. That's enough to turn $5,000 into $51,200. And they're just getting started. Here's your chance to tuck them into your portfolio now before Wall Street notices. Details here. You are receiving this email at benjamart.ss.stock@blogger.com as part of your subscription to Investing Daily's Stocks To Watch, published by Investing Daily. To ensure delivery directly to your inbox, please add postoffice@investingdaily.com to your address book today. Email Preferences | About Us | Premium Services | Contact Us | Privacy Policy Copyright 2014 Investing Daily. All rights reserved. Investing Daily, a division of Capitol Information Group, Inc. 7600A Leesburg Pike West Building, Suite 300 Falls Church, VA 22043-2004 U.S.A.