Hot Financial Stocks To Buy For 2014

There are very few terms in the investment world that can illicit as much fear as the statement "Oil prices are going...", regardless of what is inserted after the verb. When we hear that oil prices are going up because the cost to extract it is becoming more expensive, we can begrudgingly accept that fact because we understand it. What we fear most about oil prices is when we don't completely understand the reason prices are changing. This is the realm of derivatives, futures contracts, and speculation. Let's take a look at the basics of the financial aspect of oil and see what makes us so scared of it.�

An investment idea with the best of intentions...
Like all basic commodities, oil can be bought and sold on a futures contract. These contracts mean that you are willing to buy a set amount of oil today based on current prices and receive delivery at some time in the future. It's the same idea as buying home heating oil in the summer to be delivered in the winter. The hope is that when you buy, also known as taking the "long position", the price of oil is less than what it will be when you actually need it. On the flip side, you are taking a risk that oil prices will drop between the times of purchase and delivery.

Top Specialty Retail Companies For 2015: ProShares UltraShort FTSE China 25 (FXP)

ProShares UltraShort FTSE/Xinhua China 25 (the Fund) seeks daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of the FTSE/Xinhua China 25 Index (the Index). The Index consists of 25 of the largest and most liquid Chinese stocks listed on the Hong Kong Stock Exchange (HKEX). This free float-adjusted Index caps the weight of any of constituent stock at 10% to ensure broad representation of the Chinese economy. The Fund takes positions in securities and/or financial instruments that, in combination, should have similar daily return characteristics as -200% of the daily return of the Index. The Index is a price return index. The Fund�� investment advisor is ProShare Advisors LLC. Advisors' Opinion:

• [By pamatlarge]

  Three short ETFs are designed to profit from China�� economic downward slide. The ProShares Short FTSE China 25 (YXI), an unleveraged ETF, holds shares in iShares FTSE China Large-Cap (FXI) swaps. Investors looking to magnify their returns can choose from two leveraged short ETFs: ProShares Ultra Short FTSE China 25 (FXP) and Direxion Daily China Bear 3x Shares (YANG). Both ProShares Ultra Short and Direxion Daily hold shares that increase in value three times faster than an unleveraged ETF. The downside is that the per share price of these leveraged ETFs also drops three times faster.

Hot Financial Stocks To Buy For 2014: Spdr S&P Pharmaceuticals Etf (XPH)

SPDR S&P Pharmaceuticals Exchange Traded Fund (The Fund) seeks to replicate as closely as possible, before expenses, the performance of an index derived from the pharmaceuticals segment of a United States total market composite index. The Fund uses a passive management strategy designed to track the total return performance of the S&P Pharmaceuticals Select Industry Index (the Pharmaceuticals Index).

The Pharmaceuticals Index represents the pharmaceuticals sub-industry portion of the S&P TMI. The S&P TMI tracks all the United States common stocks listed on the New York Stock Exchange (NYSE), American Stock Exchange (AMEX), National Association of Securities Dealers Automated Quotation (NASDAQ) National Market and NASDAQ Small Cap exchanges.

Advisors' Opinion:

• [By Selena Maranjian]

  Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add some pharmaceutical stocks to your portfolio, the SPDR S&P Pharmaceuticals ETF (NYSEMKT: XPH  ) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.
  
  The basics
  ETFs often sport lower expense ratios than their mutual fund cousins. The SPDR ETF's expense ratio -- its annual fee -- is a relatively low 0.35%.
  
  This ETF has trounced the world markets over the past three and five years. As with most investments, of course, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.

Hot Financial Stocks To Buy For 2014: Western Asset Global Partners Income Fund Inc. (GDF)

Western Asset Global Partners Income Fund Inc. operates as a close-ended fixed income mutual fund launched and advised by Legg Mason Partners Fund Advisor, LLC. The fund is sub-advised by Western Asset Management Company. It primarily invests in the fixed income markets across the globe. The fund invests in high-yield U.S. and non-U.S. corporate debt securities and high-yield foreign sovereign debt securities. It benchmarks the performance of its portfolio against the Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index and the JPMorgan Emerging Markets Bond Index Global Index. The fund was formerly known as Salomon Brothers Global Partners Income Fund Inc. Western Asset Global Partners Income Fund was founded in 1993 and is based in the United States.

Advisors' Opinion:

• [By Chuck Carnevale]

  Our first example looks at Vectren Corp.�� historical earnings, a utility with a 15-year historical earnings growth rate that is below our 3% threshold established in Part 1. Note that fair valuation is calculated using Graham Dodd�� Formula (GDF) deriving a fair value PE of 13.8 (slightly below, but close to our PE 15 standard). However, a normal PE of 16 has been historically applied by Mr. Market. Therefore, valuation falls between a PE of 13.8 to 16, or well within a range of normalcy.

Hot Financial Stocks To Buy For 2014: Dividend and Income Fund (DNI)

Dividend and Income Fund (the Fund) is a closed end management investment company. The Fund focuses to invest, at least 50% of its total assets in equity securities, including dividend paying common stocks, convertible securities, preferred stocks, securities of registered and unregistered investment companies (including, but not limited to, closed end and open end management investment companies, and business development companies) (collectively, investment companies), exchange traded funds organized as investment companies or otherwise, real estate investment trusts, depositary receipts, and other equity related securities (collectively, Income Generating Equity Securities). The Fund may invest in fixed income securities, including bonds issued by domestic and foreign corporate entities and U.S. government securities. Bexil Advisers LLC acts as the Investment Manager of the Fund. Advisors' Opinion:

• [By Dividends4Life]

  According to a Gabelli Funds report, managed distribution policies offer several advantages, including:1. Lower difference between the fund�� market price and its NAV per share.2. Provides support during periods when the stock market is in a decline.3. Provides a measurable performance target for the investment adviser.Below are several high-yield funds from CEFA that have a managed distribution policy (yields as of December 16):Aberdeen Australia Eqty (IAF)- Distribution Yield: 10.4%- Income Yield: 3.46%Bexil Advisers LLC� (DNI)- Distribution Yield: 11.1%- Income Yield: 3.56%BlackRock En Capital&Inc (CII)- Distribution Yield: 8.78%- Income Yield: 2.34%Cornerstone Strat Value (CLM)- Distribution Yield: 18.77%- Income Yield: 1.83%Cornerstone Total Return (CRF)- Distribution Yield: 19.10%- Income Yield: 0.85%Delaware Inv Div & Inc (DDF)- Distribution Yield: 6.70%- Income Yield: 5.26%Gabelli Equity Trust (GAB)- Distribution Yield: 7.58%- Income Yield: 1.54%Gabelli Utility Trust (GUT)- Distribution Yield: 9.45%- Income Yield: 2.84%MFS Special Value Trust (MFV)- Distribution Yield: 9.60%- Income Yield: 5.73%Nuveen Tx-Adv TR Strat (JTA)- Distribution Yield: 6.70%- Income Yield: 3.12%TCW Strategic Income (TSI)- Distribution Yield: 10.54%- Income Yield: 7.88%Zweig Total Return (ZTR)- Distribution Yield: 7.27%- Income Yield: 1.95%As noted in the Gabelli report, a managed distribution policy may create confusion regarding the true current yield since the reported yield includes the return of capital portion. You can see the disparity above between the income yield and the distribution (reported) yield.If you are looking for a sustainable and growing dividend, you may want to consider some blue-chip dividend stocks such as these with a Free Cash Flow Payout less than 50%, 50+ years of consecutive dividend increases and a 2%+ yield:3M Co. (MMM) is a diversified global company provides enhanced product functionality in electronics, health care, industrial, consumer