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For the last 80+ years, the Dow has gained 3.39% between December 21 and January 7. That’s more than 40% of the Dow’s annual gain in less than 5% of the year! (Thanks, Eddy, for that nice piece of analysis).
Yes, proof, Virginia, that Santa does exist.
Storm Watchers have, of course, been using this as an, ahem, regifting opportunity, selling vigorously into whatever feeble strength we can find.
A glance at the slap-happy options pits shows as much optimism now as at the market peak in October 2007.
Like my youngest says: Crikey!
TIME TO SHORT
Buy ProShares UltraShort S&P500 Fund (SDS) at $70 or below. Set a stop loss 15% below your entry point. We’ll gain 2% every time the S&P drops 1%.
WHICH HOUSE WOULD YOU BUY?
Imagine 2 houses for sale, StormWatchers,
…one with a jaw-dropping view, complete with a patio cantilevered over a canyon. It’s a little expensive and somewhat prone to mudslides and forest fires but…that view!
…the second house is small and has no view to speak of. But it backs on to a swift-flowing river. This river supplies your drinking water, your food, even your energy. And it’s being practically given away, because home buyers want the first, much more glamorous house.
Well, as you can probably guess, the first house is what you buy if you have a growth-stock portfolio. But the second house by the river is the one I want you to buy because that sustaining flow of dividends will make your life serene, especially in stormy ’09.
A RIVER RUNS THROUGH IT
My goal: a fat dividend check in your mailbox every month in 2009. This is an integral part of my Simple Profit System.
You’ll need a minimum of 3 dividend champs: 6 is better.
Example:
| Kimberly-Clark 4.1% yield |
Jan/April/July/Oct |
| NuStar Energy 11.3% yield |
Feb/May/Aug/Nov |
| Pinnacle West 7.4% yield |
Mar/June/Sept/Dec |
I’ve identified 2 dozen stocks you can mix ’n match for a monthly check—I’m going to give you the list free here.
LOTS OF INTEREST…
…in my brand-new January issue of Profitable Investing. Grab it—ask questions. Do it here.
Here’s a rundown:
- two blue chips with $10 billion stash o’cash each. One is laughably cheap, the other is a big snack outfit primed to soar in the recession. More on them both here.
- the absolute-slam-dunk-best money market yields on the planet. No minimums, no gimmicks, free transfer, all online.
- Not only that, but I uncovered a short-term CD paying well over 3% from a well-capitalized bank.
- AND a “Tiffany” quality closed-end fund on sale at 23% below its NAV.
- Plus, why you should avoid Treasuries. All here.
Lots of strategic/2009 stuff, too, including a Seven-Year Plan that I believe you should print out, laminate and tape to one side of your computer. It’s THAT important.
Get the entire issue here.
THAT’S IT…
…for today. Go short, build your house near the mighty Dividend River. Be in touch. Talk to you again on Friday with a surprise I know you’ll love.
Richard
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