This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Profiting From Upcoming Economic Changes in 2014


NEW YORK (TheStreet) -- Hardly a day goes by that I'm not asked my thoughts on the market. Will we continue higher or face the music and get hit in the side of the head from a correction?

It's the wrong question to ask because a correct answer won't help most people. The answer isn't as easy as up or down. Regardless of the overall market, there are always opportunities. A better question to ask is, What are the potential risks and rewards available?

I'm not making predictions per se, which is often a useless exercise in isolation. More important for investors, I believe the odds favor an environment that, when combined with consideration of the overall perils and rewards, allows for better decision making.

Gold -- I nailed the fall in the price of gold during 2013. I didn't make a lot of friends among the gold bug community, but my objective isn't to fill the punchbowl -- it's to evaluate, analyze and report my findings. 

During 2014, gold will trade for under $1,000 for the first time in over four years absent a "black swan" event. Gold mining stocks see further declines. Don't expect gold falling to 2001 levels though. China, India and other growing economies will effectively place a long-term floor above $700. Once gold stabilizes against the dollar, it becomes even more attractive to Chinese because it no longer fears a rapidly falling price due to the Chinese yuan's strength.

Everyone and their brother has joined the gold bash party of late. It was pretty lonely when I recommended taking profits. It's far from too late, although the risk-to-reward profile isn't as strong.

Health Care -- In 2014, the first of many Affordable Care Act  ("Obamacare") exchange customers declare bankruptcy from medical bills not covered by their insurance. The news diminishes the argument that the ACA prevents families from financial ruin during a medical emergency. Congress side-steps responsibility by shifting the focus on health insurance policies. Media rhetoric from the upcoming employer mandate in 2015 and increased public frustration results in losses for several tightly contested U.S. Senate races, including Minnesota's Al Franken, in November.

Health insurance companies face a larger-than-expected selection bias, resulting in higher-than-expected claims. Federal funds to offset insurance losses are expended much quicker than anticipated. Medicare patients report nationwide difficulties locating doctors that will accept them and a much longer waiting time to be seen. Health Insurance stock volatility rise due to uncertainty of federal subsidies amounts.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs