Friday, October 24, 2008
As much of the financial world panics, I do not. Sure, stocks are being sold off.... cheap! The Dow Jones is sinking as is the S&P 500. Panic sellers are losers. Want some cheap stock? It's out there. It may get cheaper yet. But remember, cheaper shares means you can buy more of them for the same price. When the market recovers, shares will mean everything! And these shares will go higher. Even the shares of the bad stocks will increase in value. Find a good cheap stock and your bottom line will grow.
Do you think that the Federal government will allow Ford Motor or General Motors go bankrupt? I think not! Ford shares are $1.99 and General Motors is about $5.00. Sure, they are struggling. But cars eventually wear out. The economy will get better. Their new lines of fuel efficient cars will sell, and they won't lose as much money. Might even make some. $2.00 stock will become $10.00 stock and $5.00 shares will become $30.00 shares. And these are the bad stocks right now. The good stocks will do even better.
Are you afraid of the market? This is a great buyer's market. You can bet the brokerages are loading up and getting ready for the upswing. Then we can complain about them making too much money again. In reality, they will save the market and make it tradable again. The dirty old brokerages just might save our 401K's after all.
P.S. Everywhere I go Starbucks is busy. Just think of how busy they will be once the economy swings upward. I don't suppose that will boost profits, do you? Might be worth a few shares now for the future. I drink so much of their coffee, they should make me part owner, or grant me some free shares. I love their coffee, atmosphere, and music. At least tonight.
Other picks: AK Steel, Gerdau American Steel, Citigroup (really cheap), Halliburton, Conoco Phillips, Chevron, Exxon Mobil. Oil demand is down now, the stocks are cheap. But we will drive again this summer and OPEC will cut production, and Obama won't do anything to boost domestic oil production. Oil will be back over $100 next summer. Consumers will buy hybrid Fords and Chevys.