Fill your Christmas stockings with these 4 companies

This Christmas, use a part of your holiday to set yourself some financial goals for 2014. Learn how to invest, watch the markets and listen to seasoned investors talk about what they think will be the best industry to invest in (and why) throughout 2014.

Here’s some predictions for the markets in 2014.

Firstly, interest rates will stay where they are and I will not be surprised if the cash rate drops 0.25%. Secondly, the dollar will fall. Thirdly, the big banks’ share prices won’t rise in the same way they did in 2013. There will be no dividend rush but the high-yielding blue chips will sustain their share prices. And finally, confidence will rise.

Based on those predictions here’s four stocks I’m tipping to benefit in 2014 and beyond.

Cochlear (ASX: COH) is a manufacturer of implanted hearing devices. Its share price recently took a big hit because of lower earnings guidance – largely thanks to people waiting for the release of its most recent model, the Nucleus 6. With a lower Aussie dollar and room for growth, Cochlear is one to watch in 2014.

Another biotech stock with plenty of potential for overseas growth is Resmed (ASX: RMD). Resmed does a majority of its business in North and South America and will be welcoming a lower AUD. Both Cochlear and Resmed are great established companies and, as such, investors could be expected to pay a high prices for the stocks.

Around Christmas, Australians go into a shopping frenzy and spend around $1 billion per day. Retail chains like Myer (ASX: MYR) do a majority of their business around this time of year. Myer is a company which I believe has many macroeconomic tailwinds at its back. These include a lower dollar (making Australian retailers’ products look comparatively cheap versus foreign products), rising confidence (they need this in order for people to spend) and it pays a hefty dividend at a time when interest rates are at historic lows. Myer has improved its efficiency and online presence, I’m tipping a strong year for Myer in 2014.

When stock markets rise financial advisors are likely to impress, fund managers appear godly and wealth managers like prophets. An astute investor looks at financial firms that have stood the test of time and posted strong shareholder returns. Challenger (ASX: CGF) is my favourite diversified financial company on the ASX and has a total average annual shareholder return of 13.3% plus dividends. With the market set to trend higher in 2014, Challenger is one to watch.

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