Now to the markets: unless you want to short now, buy these cheap cash-machine Baby Bells like VZ at PE 10 with no profit warning. Or catch the tech former-leader bottoms (CSCO, PALM, SUNW, EMC, ADBE, AAPL, LU) and hold until there's a shortage of product and interest rates are at 4% and borrowing dirt cheap. We're in for a recession of 6-12 months but vastly lowered expectations may bring upside surprises sooner than people think. Patience and buying when no one else is will be rewarded. Companies like VZ, GE and SBC will take over anything they want cheaply and end up ruling. I'd also look at obvious takeover targets like LOR, WCOM, FON and ELNK. They gotta go soon. And the internet is stil growing by leaps and bounds. Make no mistake. I like Boeing (spy satellite biz especially), JNJ and CAT (bull-dozing wilderness areas) on dips. Sadly, the oil companies that benefit from ruining ANWAR, refinery builders and coal polluters (especially during an energy crisis) may also be good buys. But I prefer to invest in clean companies. Shell is the most ethical of the bunch so that would be my choice if you want to go oil patch. Also fuel cell and clean energy producers. But damn Cheney for suggesting more nuclear plants. Not in his neighborhood I'm sure. So in whose?
We are once against approaching very oversold territory. Buyers beware but buyers also be aware. Cash is king when you're unsure.
PS - Make your voices heard in DC if you agree with anything I say. The foxes are in our chicken coop.
Don't be fooled by the rhetoric. |
