VERY Concerned

The G-20 meeting sure smacks of the times before the darkest days of the Hoover Administration when The US became protectionist. Now it seems that it is everyone else in the world that wants to pull back of stimulus. At this point I would only buy the most conservative and highest paying stable companies I could find. Utilities like Southern Company and Dominion Resources ae about as good as they come. I have moved into the bearish camp and would keep most of your powder dry until we see clear signs of economic expansion.

Be Safe

The Truth of the matter

The truth is that the market (as measured by the Dow) is at the same level it was 10 years ago. So the important way to invest is not by investing in the "market" You do not buy whole grocery store when you go food shopping and neither should you buy the stock market. By selecting individual issues that give you what is right for your appetite you can live a long and healthy life.

For some AT&T and Royal Dutch Shell because of strong dividends and balance sheet are good investments. For me, I love to look at companies that have come from the fires of hell and show great long term potential (currently long term for me is a year). Right now I have 7 stocks in my trading portfolio. 6 are not doing well (down a little and up a little), but one (Las Vegas Sands) is doing so well that it is making up for the others and giving me a great overall return. The key to investing, in addition to all that I laid out in the list of 10 last week, is ask ask ask. If you are conservative buy conservative stocks if you are a trader, buy trading stocks. The only way you will know which is which is do your home work. My biggest laggards right now are CitiBank and Ford. Am I going to sell them, Absolutely not, I will buy more if the price goes lower. These stocks are an easy double or triple in the next two years. How about Ruby Tuesdays, next time you are hungry stop in and look at how many tables are full at dinner time. Ask the manager how business is doing compared to last year. Ask him if people like the new menu. Soon you will be looking at where you do business in a different light. Ask yourself. If I could buy the entire company would I? If the answer is yes, go look at the earnings on the internet. Are they growing? Is debt beging reduced? Are same store sales increasing. Buy buy buy. Oh and just a word to the wise, do not believe the talking heads on TV. They are selling advertising time, not stocks.

Say amen somebody

Told you

Now, tell you friends to sign up as a follower. Who knows they may even pay me for something.

Up-ward trend is in the offing

A little knee jerk reaction yesterday just to trap some bears. Positive report on economic activity in China should fling the overall market to a nice level today. There was a solid jump off the S&P support level after King Ben spoke on Tuesday and here is the line for the day: We will not visit that support level again for a long long time. Dow 12,000 here we come, even if it takes awhile to get our footing. (Young bulls do not run far from there mothers, util they get their legs} You can quote me on that.

Fed Speak

Finally, Big Ben, the chairman of the Federal Reserve said this morning that we are not going into a double did recession. All the indicators for the last 6 months confirms this or should I say he confirmed what the indicators have been saying. Hopefully, the street can now start focusing on the positive and stop the foolishness that has kept us all on edge.

Even my labrador acted like she was feeling better today. And that is a great indicator.

What me Worry?

Those were the infamous words of Alfred E Newman. And for the record yes, I worry every day. you see it is impossible to out smart the markets with timing, intelligence or fraud. At some point the market will and does humble us all. My point is if you invest you have to follow certain long time edicts:

1. Invest not thy whole wad.

2. Always keep some dry powder.

3. Buy on bad news sell on good.

4. You never loose money by taking profits

5. Never make an investment decision based on tax consequences.

6. The best way to get rich quick is to invest for the long term.

7. Buy companies that make or service products you know and love.

8. Diversify, own some stocks, bonds, CD's with some coming due each quarter,

9. Do not get married to a particular investment, when it is time to sell it is time to sell.

10. Get a companion dog, like a labrador, that will love you even if they have to eat dog food.

Most importantly, remember do not make investment decisions based on fear or greed, you will aways be on the loosing side. When you are totally worried that the world is falling apart and you are going to loose everything do not sell. When everyone around you is telling you to buy something like gold, a particular stock etc, smile and just say you will look at it, then sell it if you already own it.

have a great week

Bruce, still waiting to be able to retire

Great One year CD rate

If you want to wait out the Churning Urn of Burning Funk in the stock market I have found a better then market rate from a solid community bank Check out Franklin County United Bank headquartered in Dechard, TN 1.95% apy for one year term from a well run and capitialized bank. In view of full disclosure I am a stock holder in the bank. But, that does not detract from a good rate that is FDIC insured. Check them out.