This ‘Hidden’ Market Is Waiting For Obama — But You Can Invest Now

Fifth Street is widely diversified and boasts a market cap of slightly more than $1.2 billion. The stock has a five-year average dividend yield of 11.5%. The majority of Fifth Street’s debt investments are in floating-rate securities, so the prospect of rising rates could actually help Fifth Street.

Technically, shares of FSC recently spiked downward below the 50- and 200-day simple moving averages. This sets up a great breakout buying opportunity.

Risks to Consider: Fifth Street Finance’s business model is risk-averse and well diversified. However, this does not eliminate market and economic risk from the equation. Like all BDCs, the company is dependent on economic growth and a stable market. Always use stops and position size properly when investing.

Action to Take –> Fifth Street Finance provides the average investor a way to participate in the venture capital/private equity arena just like top-tier investors. The stock gapped down recently due to the pricing of a 15.5 million-share offering at $10.31 a share. This creates a buying opportunity for savvy investors. Buying on a breakout close above the 200-day simple moving average at $10.20 makes a great entry level.

My prediction about Obama profiting from private equity after he leaves office is not unfounded… Bill Clinton made $15.4 million from it. George H.W. Bush… Jeb Bush… Rudy Giuliani and Al Gore all made small fortunes in this space, too. To learn more about this private investment arena that yields up to 17%, click here.

– David Goodboy

Warren Buffett’s Top 5 Stocks

Buffett’s firm, Berkshire Hathaway, holds dozens of stocks. But these five make up 75% of its portfolio… worth $65 billion. Click here to get Buffett’s top 5 stocks plus his 16 latest buys, FREE