While some might argue that advice given today on the stock market will not be of any use tomorrow — and in some instances, this is the case. However, when it comes to investing in large companies and corporations, most of the advice you come across can be useful even a bit down the road. Some of the best stocks to invest in are those of larger companies that are all but solidified in their industry and in the economy.

There are some brands that are household names, and chances are the companies that own these brands are one of the larger names in their industry on the stock market. These may sometimes be “blue chip” stocks, which are those that experience slow growth with little chance of a loss. These are the most expensive to invest in, and are for long-term investment plans instead of short term.

Some of the absolute best stocks to invest in right now are blue chip. Some industries are simply doing better right now, and with many corporations breaching out into China for their future plans, some blue chip stocks are set to grow exponentially over the next few years. That means both security and profit for investors.

Actually getting into blue chip investing is not possible for some beginner investors because of the price of the shares, and some experienced investors instead choose to invest in more liquid companies. It is much faster to get rich off of a newer or smaller company that makes all the right decisions than it is to get wealthy off of blue chip stocks.

Should you be looking to invest in more liquid stocks, take a look at the companies that are on the head of today’s top market trends. For example, companies that provide goods and services at affordable prices are doing much better than those at a higher price point. You could also look at stock options in the technology sector. Not only are there new technology companies to consider investing in, but even established companies within this sector with big announcements can see a big change in their stock values in short periods of time. This is sometimes even the case in blue chips in the technology sector, making some of the best stocks to invest in blue chip technology stocks.

The best stocks to invest in today are often not the traditional options that were considered good investments just a few years ago. Companies are getting creative, and some are seeing more growth than they could have ever expected. Keep a finger on the pulse of market trends and the current economic climate to see what industry and exact companies you should be putting your money into this coming year.

The stock market can seem complicated to those not accustomed to it; but to those who take the time to get to know how stocks work, it’s really very simple. One might argue that something you have to learn is complicated, but it really comes down to being able to make smart decisions and reading the market.

So what are stocks anyway? Why can you buy and sell them, and how do they affect businesses?

Stocks themselves are shares of a business. Someone who owns shares of a company owns a part of it. This is why you hear about stock holder meetings and the stock holders themselves holding power over companies. This is the basis for how stocks work — you buy and sell pieces of a company, playing a direct part in their growth or shrinkage. A company whose stocks are being bought is going to grow, while one whose stocks are being sold will likely shrink.

Being able to buy shares gives the people the ability to contribute to a company they support or think will be successful. Companies rely on people to buy their stocks in order to gain extra capital and fund their own growth. In that same vein, if a company is speculated to or actually does do something that can impact their earnings, stock holders can sell — thereby either making or losing money on the deal — before the ship sinks.

If a company wants to expand but is not stock listed, they will have to get a loan to go through with their plans. Loans come with interest, and the interest on the huge loans that most companies aim to take out is more often not worth the basis for the loan in the first place. This is what makes stocks to valuable to medium and large businesses. Instead of getting a loan, they instead allow investors to purchase shares of their company to fund their growth and future plans. There is nothing to be paid back, and the system can be more profitable and beneficial in the long run.

After you find out how stocks work and find yourself interested in getting into the stock market, you have two primary ways to proceed. You need a stock broker in order to get started.

Brokers can be found online or at a physical location, but they are certainly not all equal. Full service brokers are the hardest to come by, but are those capable of giving you advice on your investments. Discount brokers are most easily found on the internet, and have lower commission prices than full service ones do; but they offer no advice in the way of buying and selling. They are still a viable option if you know how stocks work, and are willing to regularly do research on your investments.

There are several potential investments for 2012 that may surprise you if you happen to be new to investing as a whole. 2011 was a strange and volatile year of growth in most sectors, with some investors having to turn to unexpected companies to invest stocks in. What are some options for you, as someone looking to get into investing?

Yum Brands (YUM) has been seeing huge growth thanks to profits from emerging markets. Yum Brands owns establishments such as Taco Bell, Pizza Hut, and Kentucky Fried Chicken. These brands have been booming overseas, specifically in China. Kentucky Fried Chicken is the top Western-owned service restaurant in China, and has been established in the country for 20 years. With China’s current growth, Yum Brands is seeing steady growth and stands as one of the best investments for 2012.

The United Parcel Service (UPS) is a solid investment solely in terms of hard numbers as opposed to speculation. UPS stocks trade at around $70, and have an implied upside of 12.6%. The company trades at more than 17 times the speculated price for this year, which looks promising for potential and current investors. Despite increased competition in this field, United Parcel Service continues to grow and the downsizing of the United States Post Office can only help growth and volume in 2012.

Google (GOOG) is a staple of everyday American life, and it is also a staple of anyone looking to invest in the technology sector. Though Google had a small dip in 2010, it has come out strong in 2011 with its mobile business growing as time goes on and should continue well into 2012. Though Google might seem to put forth some strange efforts, the company certainly knows how to come out on top to the delight of its investors as well as its employees.

Cisco Systems (CSCO) is another sound investment to be found in the technology sector. Cisco plays a part in many of the biggest trends in the technology field, and with digital-based distribution and computing becoming a thing of the now instead of the future, Cisco’s future is looking even more optimistic. With that said, the growth over the coming months is speculated to be slow, though steady growth is predicted, with faster growth to be coming after the brief slow period. This makes Cisco Systems one of the best investments going into 2012.

United Technologies (UTX) is another option to consider, with their brand covering a huge range of products. This keeps them safe from huge dips, and ensures steady growth both now and later. 60% of the company’s profit is made within the country, with most of the remainder lying in China’s real estate market. As China urbanizes, United Technologies is set to continue to thrive in both the foreign and home markets. As speculation stands now, this company is looking to have a bright future on all fronts and makes it stand out among investments in 2012.

Penny stocks are stock options that are most often traded for less than $3 a piece; sometimes they can be classified as those sold for less than $5 a piece. The aspect of getting into penny stocks this year can be tempting, especially if you are looking for some side income. The penny stocks 2012 has to offer are more varied than ever, but learn a bit about the penny market before going out and buying up stocks.

Stocks that are sold for less than $5 a piece are those in smaller companies. You may see it as investing in company that might make it big one day, but you also need to know the risk. While it’s easy to find information on the fiscal status of a large company and make informed decisions based on that status, that is often not the case with the smaller companies you will be investing in. These companies are not required to have independently audited records, and there are not analysts tracking them. Keep this in mind when looking at penny stocks in 2012.

Though the value of these stocks is lower, the risk is higher overall. The value of smaller companies is much easier to change than those that are larger because several people have control over larger companies — only one or a few might have control over smaller companies that you invest into.

Most often, you will be trading penny stocks in the short term. While you may invest in larger companies over the span of years, it is often in your best interest to invest in smaller companies for short periods. It is more risky to keep invested in one of these companies for extended periods of time. While you may get lucky in your investment if you keep it over time, you will most often make money by short term investing.

There are plenty of penny stocks for 2012 that are on the table, and with the right information and mindset you can take on trading these types of stocks. It requires less prep work and research, but if you find a gem that other investors may have missed, there is a huge opportunity for growth and profits for you as the investor who doesn’t follow the pack.

The 2012 stock market has been a crazy ride for long-term investors, and new investors have either had a great or terrible year. The best stocks for 2012 have been in some unexpected sectors despite the current state of the economy, and some companies that have been steady in the past have remained this way over the year.

Americans are all about saving money, especially these days; this has lead to a boom in companies that cater to those looking to save money. Discount retailers, fast food establishments, and home improvement industries have all seen good turn around’s this year.

TJX Company, the parent company of retailers T.J. Maxx and Marshalls, is one such company that has had a great year in stocks for 2012. The company has seen record revenue as consumers look to more affordable clothing options. While larger and more expensive clothing retailers such as Macy’s suffer, TJX remains strong. The company has been strangely consistent this year, and is speculated to do the same as it expands into other countries.

Wal-Mart is thriving in today’s economy as well, mostly due to the same circumstances that TJX is thriving. The difference is that Wal-Mart sells more than just clothing, and cheap electronics and food are at the top of most consumers’ shopping lists.

One of the biggest surprises for investors over the past two years has been Yum Brands, the owner of Kentucky Fried Chicken and Taco Bell. Fast food is as strong in the states as ever, but the real strength of Yum Brands lies in China. Kentucky Fried Chicken is the strongest Western-owned fast food establishment in China, and as the country continues to urbanize and propser, Yum Brands is set to grow for some time.

Last but not least is Lowe’s, the home renovation giant. While the housing market is still at a low point, home improvement retailer Lowe’s has stayed strong through providing what consumers need in order to stay in their current homes longer. Though the housing market is looking up, Americans are continuing to be less concerned with moving into new homes — which leads to Lowe’s staying strong and remaining one of the best stocks for 2012.

Oil stocks are some of the most liquid assets you can invest in, which makes them a popular option for investors both new and experienced. As with other markets, it’s simply not a good idea to invest blindly in oil and energy companies; some research and information from those informed will help you make an informed investing decision. The oil and gas industry is vast and there are a lot of options to go over, but there are a few oil stocks to invest in 2012 for you to seriously consider above others.

EnCana (ECA) is one energy company to consider, and with one of the largest market caps among Canadian oil companies, it is a promising investment. EnCana is one of North America’s largest oil and gas providers as a whole, but what makes this company such a promising option is their focus on development of resources within the Canadian borders. Specifically, EnCana is retrieving oil from the Christina Lake in Alberta, which is estimated to contain around 1.8 billion barrels of oil in all. This alone makes it one of the most promising oil stocks to invest in 2012.

The Chevron Corporation (CVX) is certainly one of the strongest contenders in the oil companies in the world. Chevron stands as American’s second largest oil company, and is the fourth largest in the world. The third quarter of 2011 saw a 27% increase in revenue over the previous year. Rare in oil companies, Chevron has increased its dividend for 25 years straight. Not only that, but the company has a lower debt/equity balance sheet than its competitors.

Exxon Mobil Corporation (XOM) is another top contender to invest in. Exxon Mobil is privately owned and stands as one of the world’s largest corporations. Privately owned in this sense means that Exxon both produces and sells its oil, which keeps things stable for investors. Over the past ten years, Exxon Mobil has increased its oil and gas production by 120%; in 2010 the company revealed that it had more than twice the amount of oil gas in reserve as it was producing. This alone makes this one of the best oil stocks to invest in 2012 in investing in Exxon Mobil — there simply is not any room for failure.

Yet another option lies in ConocoPhillips (COP). ConocoPhillips is planning to split its refining and marketing sectors from its production sector in the upcoming years. This type of plan mirrors that of Marathon Oil, which did just that earlier this year and came out the better for it. In its current state, ConocoPhillips has grown more than 60% in the past year. This shows sound planning. While some investors are pensive about the company’s split, you can capitalize off of this uncertainty by investing now. With ConocoPhillips’ previous success, the company can be trusted in its split off venture coming next year and stands as some of the most promising oil stocks to invest in 2012.

Penny stocks are a little more simple than standard stock options, but you trade them in very much the same way. As with any stock, you can work with either a full service or discount brokerage. If you have experience standard trading, you won’t need to learn much on how to buy penny stocks.

A full service brokerage is one where you interact with an actual human broker to buy and sell shares. A full service broker will also give you advice on investments. While this sounds like the only sound option, the commission charge on buying and selling shares can be exuberant if you’re not already well-invested. Many people turn to discount broker services instead, even if having a full service would be more beneficial.

A discount brokerage gives you all of the functionality of a full service broker, without the advice that one provides. Discount brokers are most easily found online and have much lower commission prices. The downside to these services is that you will need to know how to buy penny stocks to really become successful, and it is recommended that you have some experience in trading beforehand in order to avoid making critical mistakes.

There is less initial investment capital when trading penny stocks than otherwise, which makes penny trading through discount brokerages a real option — even for novices. Though it is recommended that you learn as much as you can about the companies that you intend to invest in, with penny stocks there is no huge risk involved. Stocks that sit at $1 or $2 each are usually safe investments, especially over the short term. Though you will be paying commissions on your trades, you will not be paying as much as you would with a full service broker on these small money trades.

The internet has opened up a lot of options to potential investors. You can learn how to buy penny stocks, as well as do it right online. These two factors combined are what make penny stocks an option for anyone looking to make some money on the stock market.

Anyone  who plays the stock market is going to look for good companies to invest in. It only makes sense to look for investments that will pay off in the long run — you don’t play the stock market for fun, despite the “play” in the term. You’re in it to make money, and if you can’t find a good firm (or firms) to invest in, you’re not going to make money.

It’s true that buying stocks is a bit of a gamble, but you can take some of the guessing out of investing by looking at the past values and decisions of companies. You also have to take into consideration the economic climate and how it’s affecting them now, along with how it may affect them later. Determining what to invest in is complicated. Consider investing in the following companies; a number of them have proven to be some of the best companies to invest in.

Yum Brands (YUM) – Yum Brands encompasses KFC, Taco Bell, and Pizza Hut. While it’s true that the American public can never get enough fast food, the real value in Yum Brands lies in China. KFC is the largest Western-based fast food chain in the country, and with China’s current growth the chain has only been growing. Yum is speculated to grow even more as China continues to urbanize.

United Parcel Service (UPS) – Global trade has been kind to the United Parcel Service, and as such the company has grown to an all-time high. The company has seen a 50% increase in profit over the last year, which bodes well for investors. The UPS makes this list of good companies to invest in because there is a constant demand for this type of service. Analysts predict the UPS to grow even more over the next year.

Google (GOOG) – Google is not only a part of your everyday life, but it is also one of the many good companies to invest in this year. Google has taken a lot of risks over the past two years, and most of them have paid off. Their mobile division, having to do with the Android mobile operating device, is now one of their biggest money making divisions. Google’s profits are expected to increase by 17% this year overall. This alone makes them on top of the good companies to invest in this year.

You have reached the new home of Finance Planet, our website dedicated to all things financial. Our site will be organized into broad categories. The first category is Investments. There are several topics that fall into this category and we’ll outline them below.

Best Investments For 2012/2013

As we all know, the financial markets have been in turmoil recently. You should take the state of the market into any financial strategy. Those of you in the younger crowd typically can tolerate more aggressive investments where the capital invested is much less secure. People who are retired or near retirement may want to consider investments where the initial investment is guaranteed. So which are the best investments for 2012/2013? The answer depends entirely on you and your level of risk tolerance as well as your financial goals.

If your goals are big growth and high risk, you are going to invest in very different areas than someone who is simply looking for an insured investment with modest returns.

Investing In Bonds

What is a bond? Bonds are securities that are debt related. You typically invest in a bond and the entity that you are investing in, be it a government, company, etc. will give you interest on your bond and will pay back the principal at a later date. Now bonds have a reputation of being a relatively safe investment. You must exercise caution because this is a broad statement and you must carefully examine the bond’s terms to make sure that your principal is guaranteed. Bonds from municipalities are popular because some of them are exempt from certain taxes. This should be considered when evaluating the overall return on your investment (ROI). Keep in mind that the price you pay for safety is the return on your investment. You are trading security for returns. In plain English, that means you get less return for your money but you are investing in a safer financial instrument.

Investing In Stocks

When you invest in a stock, you become a part owner of the company offering that stock. There is so much written on this topic. Stock investing can be very risky because there’s no guarantee of anything, principal, gains, etc. Stock offerings vary widely from company to company. Some offer dividends, some don’t. Stock prices vary from day to day and economic and corporate events can cause a stock to soar or plummet. You must be prepared for these risks when evaluating any stock for purchase.

When looking at individual stocks for purchase, you must evaluate the company and the industry as a whole. Is the industry on an upward trend or is it a victim of the current economic slowdown? Are you looking to pick up a bargain in hard times? If so, is the company undervalued? What’s the company’s current financials? Do they have lots of liquid equity? There are so many questions to answer, so some investors turn to investments based on a number of stocks to limit the risk associated with any single stock. That brings us to our next topic.

Investing In Mutual Funds

Mutual funds offer an investor the ability to invest in a multitude of investments that they otherwise may not have access to. A mutual fund may be invested in stocks and bonds from corporations, government entities, domestically or internationally.

When evaluating mutual funds, it is important to look at the focus of the fund. Is the fund manager looking at growth? Are they aggressive, or conservative? What is their track record? Is the fund open to new investors? What is the minimum investment required? Some funds require an investment of at least $5,000 initially.

Another consideration is the amount that is charged back to the investors for the administration of the fund. Any amount charged to the fund for administration comes right out of your pocket. So-called no load funds supposedly have no administrative fees, but you must examine the fine print to make sure that there aren’t any hidden fees built into the fund.

Investing in Commodities

Commodities are raw materials like oil, metals, produce, things like sugar, coffee, cotton, etc. Typically they are traded on the Futures Market where investors speculate on the direction that the price will take.

This type of investing has significant risks and volatility. For example, if you are trading futures based on crops and an unexpected weather event occurs, then depending on which way you speculated the price would go, you could  be wiped out or make a significant sum of money. This type of investment is certainly not for the average investor because of the inherent risk.

Investing in Gold

Investing in gold has become so popular and we are being bombarded by gold advertisements. The reason for this is when financial markets are unstable, people turn to something that has inherent value, a physical good of substance. Gold has historically been held in high value throughout history. Just look back at the temples of Egypt and you’ll see gold everywhere. The public perception of gold is that it will always be valuable so in times of turmoil, investors will turn to gold as an investment vehicle. The problem is when any investment reaches its peak price. Gold prices are very high and the potential for a downswing in pricing is very real right now. As with all investments, proceed with caution and do your research.

So, we’ve taken a look at some of the major investment categories and there’s more to come. What’s the best investment for 2012 or 2013? As we’ve discussed, it depends on your investment strategy, tolerance for risk, income expectations, and available funds.