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Paper Topic:

Investments

Investment recommendations

When looking for solid , long term growth stocks , it is generally a good idea to focus on commodities which will continue to be needed in the foreseeable future . Healthcare , Raw materials and Energy seem to be 3 of such investment sectors . Healthcare and pharmaceuticals is something we all need , but because technology is changing rapidly in this sector so is volatility . Furthermore when a new gizmo is marketed it takes a while for users to see its utility , and like many drugs we recently heard about damaging effects are not

found until many years later . Thus I gravitate toward stocks in the Basic Materials Energy Sector . This sector has also seen its share of ups and down . But , there is god reason to think that at least some of the major companies will flourish in the near future , even as our focus shifts from fossil fuels to alternative sources of energy . Consider that America 's dependency on foreign oil has doubled since 1984 and has risen tenfold since 1950 . Petroleum demand is doubling about every 10 years . U .S . oil stock piles are at 27 year low (14 days of domestic consumption . We are vulnerable and controlled by foreign oil pricing . Foreign oil deprives America of jobs , tax revenue and security . In effect , two of every three gallons of gasoline are imported , with much of it coming from countries that hate America and use money to fund terrorism . Also , it costs the U .S . military 33 billion a year to protect oil exported from the Middle East during peacetime . These facts are in the public focus nowdays , and there is considerable pressure on home industries to do more to make our situation more flexible . In fact these companies have been working on new technologies for both old and new energy sources , and enough time has elapsed that very soon this industry will start picking up speed and competing effectively with foreign energy sources . In general investing in this sector has a great potential for high financial awards . Often there is a return of Capital in 6 to 12 months , a better than 10 to one Return on Investment , and a greater than 50 Annual Rate of Return . The risk for an average new well is less than 10 years ago , and with advanced technologies now available , the probability of success better than 90 . There is some tax advantages associated with this investment sector as well . Congress gives tax breaks to individual investors that are not available to large companies . Returns can be up to 100 tax deductible . 65 to 80 can be written off in first year . An argument that is sometimes made is that big money has gone offshore and overseas because there are too few easy-to-find big oil fields remaining . Over 10 ,000 oil companies have left the arena since 1982 . But , for those that remain even small drilling projects have a high success rate thanks to advanced surveying technology . Some companies report 85 success on...

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