The year is coming to an end and the new year of investing is upon us. Before doing anything drastic or not doing anything at all, there are some things you might want to take note of so all your ducks are in a row and so are your investments. That way, everyone can insure a prosperous investment year and avoid any losses.
Are Obamacare Penalties Going to Affect My Investments?
First thing you have to ask yourself is "Do the penalties apply to me?" Well if you already have health insurance through an employer than you have no worries. If not, though, the penalties could affect you. There's a positive note that even if you're not insured for most of 2014, the penalties won't apply to you. Just make sure you're enrolled by March 31, 2014. If you're wondering what the penalty is, the minimum is $95 per uninsured adult and $47.50 per child, which can up to $285 per family. Another catch is you could even be paying more depending on how much you make.
This is where your investments come into play when filing your 2014 tax returns. If you're not covered and decide not to send the money, the IRS could take it out of your tax refund and your taxes are withheld through your employer. But they can't press criminal charges. If your investments are in property, you're safe. But depending on how much you make throughout the year and if you're uninsured this could cause major tax refund issues.
Is a Weaker Dollar on the Forefront?
So far the dollar has remained pretty stable throughout this year. However, as recent years has shown with the market, the dollar loves to plunder and resurface throughout the year. A currency specialist, Samsons Capital's Lewis has said "2014 will be a weak dollar environment." This can lead to "commodity-friendly" investments and stocks of companies that earn income from abroad. This is only is the economy remains sluggish and there are still low interest rates. Preparing with a "weaker dollar" in mind will give you the reserve you'll need when considering making any long-term investments, or deciding to buy/sell throughout 2014.
Use the Seasons To Your Advantage
Seasonal patterns have been known to boost investing gains. One can see that the November to April period is stronger than May through October, of course this does not mean to completely avoid the market or to stop investing after May. This is just a pivotal point to be more aggressive in the winter and spring with the consumer discretionaries, industrials, and materials. Then in Summer and Fall get more defensive on investing options through consumers.
This strategy has been proven to produce double the returns of the Standard & Poor's 500 index (6.7 percent vs. 13 percent since 1945).
Undervalued Global Brands To The Rescue
Economic recovery has been leaped over in the past year by Japan and Europe. There are powerful global brands that have very little exposure to bigger economies. A good example is the shoe company Adidas, which according to earnings estimates is relatively cheap. S&P Capital Reports show Adidas earnings projected growth to be twice of what they were last year, compared to the likes of a company like Nike.
One should not let inflation fears guide your whole investing strategy. Just plan carefully and thoughtfully and get the inside scoop on overseas brands and stocks and pick your options with growth in mind. With the political situation of the debt ceiling coming back again, it's not likely to lead to a default, so this would be a good opportunity to invest in equities. 2014 may be the year you go abroad to make quite a yearly earning.