As the holidays approach, Motley Fool analyst Blake Bos suggests giving a gift that keeps on giving: stocks.
First on the list is actually an exchange traded note. It's the iPath US Treasury Long Bond Bear (NYSEMKT: DLBS), and it increases in value if interest rates go up on long term treasury bonds. With interest rates at historic lows, it could be just a matter of time before interest rates return to historic norms and this instrument is one of the few that allows investors to profit from rising interest rates.
Among the stocks on Blake's Christmas list are Timken (NYSE:TKR), a manufacturing company focused primarily on friction components. While the business may not sound exciting, Blake likes Timken's strong cash flow, solid dividend, 15% insider ownership, and potential for tremendous return on investment if management can meet its stated sales targets.
For a little more exciting stock idea, Blake recommends SodaStream (NASDAQ:SODA). Based in Israel, SodaStream has generated tremendous growth, as it has built off its success in Europe and expanded into North America and Asia. In addition to growth opportunities, a reasonable valuation, high short ownership, and 10% insider ownership are reasons to be excited about the prospects for the stock. However, Blake notes that any investment in SodaStream should be made with the understanding of the current geopolitical environment facing any company based in Israel.
See more in the following video.