Well, Bobby another smart man song....
News Alert from Nightly Business Report via Quote.com
Topic: Placer Dome Inc
Quote.com News Item #4481466
Headline: "Market Monitor"-Douglas Jimerson Of National Investment Advisers
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PAUL KANGAS: My guest market monitor this week is Douglas Jimerson. He is the
president of National Investment Advisers which is a Potomac, Maryland based
advisory firm. And he is also the editor of the monthly newsletter "National
Trendlines" and welcome back to NIGHTLY BUSINESS REPORT, Doug.
DOUGLAS JIMERSON, PRESIDENT, NATIONAL INVESTMENT ADVISORS: Thank you, Paul.
It's great to be here.
KANGAS: Speaking of trend lines, are we seeing enough damage to bullish
trend lines to make you something less than bullish?
JIMERSON: Volatility. You know, I think Verde expressed it best. (singing-
Lu dow a mobile, clou you my vento). Moving like the wind, the markets are
fickle.
KANGAS: What our viewers probably aren't aware is that you are a
professional singer. So, that's a very good way to express it. But
everything seems to now be much like it was prior to October 27, when we had
bloody Monday. The Asian markets down and Japan particularly lower in the
Latin American markets. Are we leading up to another bloody Monday next
Monday?
JIMERSON: I don't believe so. I think we have to look at what's happened in
context. You know, the Dow reached its high in early August, and the
correction started then. I think that we actually saw the culmination of
that last week and the retest of those lows today. And this to me looks more
like the event of 1989 than the analogy of 1987. It's a short, short 7.0
percent shock to the system.
KANGAS: Well, you know, the last time you were with us in late March, we had
been through a very severe down turn at the time. The Dow was 6740 and you
said don't let it scare you, stay with it, buy some more growth funds. And
buy more Chevron (NYSE:CHV), which at the time was 69, it's now 85. You said
buy
Schlumberger (NYSE:SLB). After a two for one split, it's-it was 55, now it's
93.
And of all things, you liked Intel (NASDAQ:INTC) which was at 69. And it
bucked
the trend today, up 77. Are you taking some money off the table in those nice
big gains you have?
JIMERSON: Well, here's what we did. You know, two years ago we talked about
oil stocks. And Chevron was the choice. Schlumberger we added a year ago.
In the spring, I said buy Intel and sell it at a high, or matching the
high, which we did. Now, it's a buy Intel again. Sell it at the high. That
would be a 30 percent run.
KANGAS: Now, the one little clinker you had was Placer Dome (NYSE:PDG), the
gold
stock, at 18, it's now like 15. Will nothing move gold higher?
JIMERSON: You know, this is a classical period for the low price for gold
stocks, this November time period.
KANGAS: Yes.
JIMERSON: I believe we are near the end of this very long term bare market.
So again, still Dow cost average into the gold stocks, gold funds. Just a
little bit in the portfolio.
KANGAS: You still like Placer Dome?
JIMERSON: I do.
KANGAS: OK. Let's look at some new ideas that you might have here. You
sound a little bit on the defensive side-not as bullish as you have been.
JIMERSON: Well, that's correct. I'm cautiously bullish. We are approaching
the end of the bull market. We continue to look for contrarian areas. And
investors need to take defensive strategies.
KANGAS: OK, let's get to them quickly.
JIMERSON: One, is diversify the portfolio. Two, is continue to buy natural
resource stocks and funds.
KANGAS: Yes.
JIMERSON: Three, is get casualty insurance on the mutual fund portfolios.
Now, in terms of diversification. Look for mutual funds that act differently
from growth funds. I've got to remind our viewers that just buying a dozen
growth funds is not diversification. We need other types of funds.
KANGAS: Get specific, if you would.
JIMERSON: All right. Let's say if T. Rowe Price New Arrow Fund and natural
resource fund or Putnam Natural Resources and maybe a small position in
international bonds, like the T. Rowe Price International Bond Fund, which
when the bull run ends, sometime next year, I believe, our going to be good
performers.
KANGAS: OK. So stay with Chevron (NYSE:CHV)-Schlumberger (NYSE:SLB), Intel
(NASDAQ:INTC),
any new additions to individual stock purchases.
JIMERSON: Well, I would continue to-I would add to Schlumberger and my new
choice for tonight is Conagra (NYSE:CAG), symbol CAG.
KANGAS: On the Big Board.
JIMERSON: Around 33. It was up today. And I expect that is a stock that's
going to continue to advance.
KANGAS: That also would be kind of defensive, being in the food business.
JIMERSON: It's in the agricultural food business. That I think is...
KANGAS: New high in the Dow in the next six months?
JIMERSON: It's coming certainly by early next year.
KANGAS: But beware, because then the risk/reward ratio becomes very thin.
JIMERSON: That's right.
KANGAS: That's what you're telling us.
JIMERSON: Yes, sir.
KANGAS: OK. All right, Doug, as usual, very interesting outlook and I'm
glad to hear that you think there's still life in the old bull.
JIMERSON: Oh, yes. It's a great run.
KANGAS: Great. Thanks, Doug.
JIMERSON: Thanks, Paul.
KANGAS: My guest market monitor Doug Jimerson, the president of National
Investment Advisors.
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