You get what you pay for, and this
advice is free:
(1) Be patient entering stocks now. INTC couldn't
hit 0.60 EPS (or even 0.55 legitimately) during a quarter
exhibiting 4% real growth and low inflation. What
the heck are they going to do for encores when 99%
of all the "good news" is already discounted. That
goes for almost all the tech stocks IMHO.
(2) Commodities are still expanding. Wait till they
flatten out a little to extend maturities in notes/bonds.
The Fed may have to do two more tightening rounds before
housing slows down. And if the Fed loosens after a
crash fade any bond bounce for that could be the end of
our dollar as we've come to know it.
(3) Look to European index or stock funds. Pac Rim too.
The dollar may be vulnerable for quite some time.
(4) When you do begin to reenter US stocks, average
in your basis.
(5)If you've held cash since last spring, you are
already ahead of the SPX return, with far less risk.
(6) Parrot Michael Burke's moves.<ng> Keep 90% of your
money in cash, and after a sufficient stock dive, put
the 10% into one year LEAPS. But wait awhile, MB's
still short I believe. He seems to have a good noggin
for relative values.
(7) Avoid the Inuts. Just look at the insider selling
going on after the lockdown periods expire, this week
in YHOO for instance. It will crescendo and cascade on
a forward basis. BWDIK.
(8)OTOH, just BTD, be happy, don't worry, borrow,buy,
borrow,buy.-s- |
