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The Best Stocks For Investing Through the Fiscal Cliff

IStock 000020775494XSmallThe Fiscal Cliff is Coming

The fiscal cliff is nearly upon us here in the US – and our politicians seem no closer to resolving it. The markets are already getting jittery and it seems clear the economy will take it in the chin if we don’t get a deal soon to save us from the one-two punch of big tax increases and spending cuts that will send us back into recession. So what stocks should you be investing in to weather the storm?

Stocks that You Should Be Investing In To Survive the Cliff

There are a few categories of stocks that should still do fine regardless of what the politicians do. Oh, yes, the stocks may go up or down a bit with the market as it swan dives, but overall I expect you’ll be fine.

  • Mortgage REITs: Tickers like AGNC, NYMT and NLY pay double-digit dividends and simply profit off the interest rate spread between short-term rates and mortgage rates. If we go off the edge of the cliff, the Fed would presumably be even more encouraged to not disrupt interest rates and the environment for these companies will continue.
  • Natural Resources (natural gas, oil): Tickers like PDH, QRE and KMP should do fine as well. They are plays on the gas and oil boom happening in this country and given the fact that the regulatory situation for natural gas and oil in other countries is far worse than the US, these stocks should have a sustainable tailwind for years to come, which will make them good holdings regardless of the fiscal cliff. Oh, yeah, and they pay good dividends too!
  • Fertilizer: As the global population continues to grow, more crops will be needed and more fertilizer (mainly nitrogen) will be needed for these crops. RNF and TNH are two top companies profiting from this and passing along, you guessed it, sizable dividends and clean cash flows to investors.

So these are sectors and stocks worth investing in from a fundamental investing perspective – but what about the technical analysis side? Fundamental analysis can tell you which companies are good ones but you need the stock charts to understand exactly when to get in and how strong the buy signal is on a given day. One approach would be use an iOS app like iStockPicks, which can do the technical analysis and make investing stock picks for you. Simply enter the tickers above in its watch list, and it will give you buy and sell signals.

The other approach if you are more the do-it-yourself type is to do the technical analysis in Stock TickerPicker, our professional grade stock charting and analysis app for iPhone & iPad.

Whichever approach you take, happy investing and here’s to the US economy not going off the cliff…. 😀

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