Is the Blood Running already? Ex-sanguination being marketed.
Nelson: Buy Now While Blood Runs Through the Streets (BFB) (from Investools email, I do not have an interest in BFB, just the use of blood money ;^} )
Mutual fund flows confirm that investors have become risk
averse. For example, just $33.5 billion in new cash flowed
into stock funds during January 2001, down from $41 billion
last year. Most of this cash went into value or money market
funds. Only $100 million went into tech sector funds, a
mammoth drop from $9.5 billion in January 2000.
"Today's investors lack a long-term outlook," says Vita Nelson.
She reminds investors of the wisdom of buying low and selling
high, and she quotes Intel legend Andy Grove: "all recessions
have one thing in common: they end." Nelson advises buying
into today's "blood in the streets" market, noting that times
of fear usually prove to be great times to stock up. "That
approach has worked well in the past 20 years and more, and
for consistent long-term investors it won't change any time
soon," she says.
Nelson recommends buying Brown Forman (BFB), maker and
marketer of a wide array of distilled spirits, wines and other
beverages. Its Jack Daniels whiskey and Fetzer wines powered
earnings ahead over the past six years, and Nelson sees earnings
continuing to increase in the high single-digits. The current
popularity of defensive stocks pushed Brown Forman shares close
to their 52-week high of $72, and Nelson calls the firm "a
defensive rather than a capital appreciation play" and cites its
high dividend yield. |
