![]() ![]() But come on, BofA just posted a $1.2 billion loss due to bad housing loans, and by its own estimation will be on the hook for $7 billion to $10 billion to settle lawsuits over defunct mortgages securities. Yes, I suppose we could see a surprise glut of foreclosures or a shocking revelation from Wikileaks about corrupt executives and cooked books. ![]() Why? Well, partly because I see improving metrics that appeal to me - more borrowers making payments on mortgages and credit cards, primarily - but also because sentiment on the stock remains overly negative. One of my personal favorite stocks right now is Bank of America. It’s no wonder that 71% of Apple stock is in the hand of mutual fund managers and institutional investors - including over 16 million shares alone in the portfolio of Fidelity Contrafund 9, 2007, when the Dow Jones “peaked” before the financial crisis. Unless you’ve been living under a rock you know how the iPad is a runaway success, that the iPhone remains a dominant smartphone and that the iPod and iTunes are the standard when it comes to digital music. How does the company succeed? By creating innovative products consumers can’t live without. ![]() Take everybody’s darling tech stock, Apple Inc. Read 10 Warren Buffett quotes for any market on. Whether you believe him or not, you should certainly have faith in his message - don’t buy a stock if it doesn’t seem like a good business model. Warren Buffett jokes that he isn’t smart enough to understand how many companies make their money. For a long-term investor with an IRA or a few thousand dollars in a brokerage account, all you have to do is focus your cash on fewer losers and more winners to beat the market.Įasier for me to say, right? Well hopefully with these five tips you’ll see that it’s not quite as daunting as some think to pick the right stocks, even in a challenging market like this one. 9, 2007, Alcoa Inc.Ĭompletely wiped out investors who didn’t bail out in the death spiral of the financial crisis.īut that’s my point - it’s a stock picker’s market, and just buying the indexes gives you a share of the worst duds and the soaring successes. That’s an annualized gain well over 10% for the group when you add in dividends - great returns in any market, and even more impressive considering it’s based on buying at “peak” valuations as the stock market hit its pre-recession high in fall 2007.Īnd who says buying and holding blue chips is an extinct investment strategy for the timid or naive?Ĭertainly, there are some dogs of the Dow too. ![]()
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