First thing you’ll learn, Storm Watcher,
…is that I don’t “comment.” I don’t add to the chatter. Plenty of people are doing that, and some of them are even knowledgeable.
My position: You’re in a hole, needing a hand up.
Grab on.
NICE RALLY—NOW WHAT?
Brace for a relapse—and a nasty one. Likely in January, but possible before.
Sure, Obama’s winning confidence, and there’s some technical strength, but give yourself a reality check with the FedEx forecast for a “significantly weaker” ’09. Those guys know.
This is a time to sell, not to buy.
BOOK THAT TAX LOSS, DANNO
Did you sell every scrap of Citigroup (C)? Do it today and don’t look back.
Others on the chopping block:
- Appello Investment (AINV)
- Developers Diversified Realty (DDR)
- Fifth Third Bancorp (FITB)
- iShares Dow Jones Transportation Average Index Fund (IYT)
- Retail SPDR (XRT)
BUY THIS
Use your cash from these sales to load up on TIPS. Count on inflation in '09 like the sun will rise tomorrow. It’s just part of the bailout, part of the Obama Stimulus.
Exchange-traded iShares Lehman TIPS Bond Fund (TIP) is handing out 8% yield now. Buy it at $98—and tell me you did it here, OK?
TOTAL CAPITULATION WATCH
Patches of irrational pessimism crop up—Berkshire Hathaway, down 30%, dollar strength, oil’s weakness—all due to reverse soon.
Good example: U.S. Oil Fund (USO). The capitulation on oil prices hands you the perfect opportunity. Buy it quickly, but only buy a little—this is highly volatile fuel for your portfolio.
OBAMA DISCOUNT
The Obama Stimulus plan creates a premium in some areas like infrastructure, solar. So where’s the Obama Discount? Defense. Start with Lockheed Martin (LMT). Tell you more next time we chat.
Keep your sou’wester on
Richard E. Band
P.S. Look for Storm Watch next Tuesday, unless we get a squall. Oh, and thanks for your time. Don’t hesitate to ask me your most pressing question here.
As the newsletter world’s #1 authority on investing for low-risk growth, Richard Band is supremely qualified to help you build a powerful retirement income portfolio.
Since 1984, his recommendations have not only handed his readers 1,100% profits but also won him six “Financial Advisory” awards from the Newsletter and Electronic Publishers Foundation.
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