Gaining exposure to the strengthening US economy in 2012

There is growing evidence now that the US economy is slowly firming up and coming out of recession.

Good time therefore to buy into companies which will benefit from the improving US outlook.

Here are some recommendations that look credible to us:

Daimler
Has 35% of it's business exposed to the US markets and car sales have previously been one of the worst performing sectors, so much room for growth. VW and BMW have also been strongly tipped but Daimler look the most strongly recommended. None of these by the way have listings on the London market !!

WPP (WPP @ 730.00)
Global advertising and media giant has large exposure to the US

Vodaphone ( VOD @ 176.95) 
Has 40% exposure to the US

Ahold (AMS:AH @ 10.04)
A Netherlands based retail group operating supermarkets, liqueur stores and drug stores across Europe and US.

Schroders (SDR @ 1,366.00)  
Assett Management and Private Banking

A bit harder then to pick out companies which will benefit from the US economic recovery and a number of these are not on the London Stock Exchange hence you have to watch for currency fluctuation too.

We'll keep looking for any other decent looking recomendations .......

Getting into Banks in 2012

The other major under performing sector in 2011 worth a look is Banks.

We are tracking four banks who are well down over the year hence with any improved confidence and stability across US and Europe you would expect an improving share price in these stocks.

As far as diversification is concerned Barclays have 44% of their business in the UK, RBS have 64% and Lloyds have 100%.

HSBC are the most diversified of the four and would give a better global spread into the emerging far east economies but have probably fallen the least hence whilst less risky will have the least potential upside to the share price.

So tracking these four banks with a notional £1,000 in each :
Barclays (BARC) - 189.05p
HSBC (HSBA) - 501.00
Lloyds Banking Group  (LBG) - 27.68
RBS (RBS) - 21.71

You can track the current value of these holdings here :
http://www.dunover.com/investments/index.php?topic=1336.0 

Getting into Commodities in 2012

Vedanta

Glencore

Commodities were one of the worst performers in 2011 due to concerns over US, Europe and the slowing growth in China and India.

But with confidence improving particularly in the US economy it seems commodity companies seem to be jumping more than other sectors when the markets rise.

Beowulf Mining

Probably most attractive of the list below are Vedanta who are featuring in India, Glencore tipped by the Daily Telegraph for 2012 and Beowulf Mining another tip we have received but embroiled in licensing issues at the moment.

We are tracking ten companies with potential as follows:

Beowulf Mining (BEM) - 14.96p

BHP Billiton (BLT) - 2,014.00p

ENRC (ENRC) - 719.50p

Glencore (GLEN) - 401.70p

Premier Oil (PMO) - 394.5p

Randgold (RRS) - 7220.00p

Rio Tinto (RIO) - 3428.5p

Sound Oil (SOU) - 1.56p

Vedanta (VED) - 1027.00p

Xstrata (XTA) - 1043.00p

We can track the value of this on the website with a notional value of £1,000 in each stock gives a starting value of £10,000.

See the latest value of these stocks here:

http://www.dunover.com/investments/index.php?topic=1335.0

Where to make money in 2012

Lloyds Banking Group - Antonio Horte-Osorio

ARM Holdings -  Warren East

Premier Foods - Mike Clarke

Rolls Royce - Sir John Rose

Having listened to more share dealing predictions than you can shake a stick a few things are pretty clear. 

2012 will be another difficult year but there does seem to be some consistency in sectors that are viewed as under valued. Commodities, Technology, Banking and Engineering.  

Coupled with the need to re-balance the UK economy into things we do well and are still growing i.e. Technology and Engineering. 

Here are four British companies we at www.dunover.com are looking to invest in at some point:

Lloyds Banking Group

Must finally be the year for their recovery

ARM Holdings

Based in Cambridge Silicon Fell specialise in making components for Apple iPhones and iPads 

Rolls Royce

One of Britians great engineering companies looking to expand rapidly into emerging markets of India and China 

Premier Foods

Ok, in the embattled service sector. But Premier Foods are Britain's largest food manufacturer, have a new management team who have all bought heavily into the stock which is currently sitting at only 6p