Saturday, October 11, 2008
Time to Buy
Here I am at Panera's once again having a coffee before I head for today's appointment with a new client. This morning I am enjoying a Hazelnut blend of coffee and, and, a..... cherry pastry! Who could have guessed? I also read Rana's comments to my last blog. They were sitting by a fire in their back yard enjoying their coffee. Rana had the cat on her lap. Cool!
Now is the time to buy stocks and mutual funds. The market is at or near its bottom. Those not buying soon will miss part of the upswing of the market. If we think that banks will continue to falter for ever, we are fooling ourselves. If we think oil prices will continue to decline we're kidding ourselves. Energy will always be in demand, and after this decline there will be a renewed surge as OPEC manipulates the price again. Hybrid cars, although being promoted, will take years to become a significant percentage of vehicles on the road. These cars will also have to become cheaper before they will be bought in droves. And the banks will have to start lending money to bad credit risks again. These people are a large percentage of our population and are likely buyers because many of them don't watch their money as closely.
Solar energy is going to surge over the next 5 years. Why? Because the big bail out package will make it 30% cheaper to switch over to solar.
Ford Motor and General Motors are really cheap! Ford's CEO says they have enough cash to make it through the downturn and that bankruptcy is not an option. If he is right, over the next 5 years Ford's $2.00 shares could become $10.00 shares. 400% growth! I wouldn't invest a lot though, This CEO could be wrong. If he is wrong, who knows, maybe Ford would become a foreign make! Ha! just spouting off there.
Well, I need to Toyota off to my appointment.
I'll catch you at my next cup of coffee.