Oct 20 2008
Stocks on sale!
If you are an investor and have been for any length of time, you know that sometimes during the darkest hours, you can find some of the nicest bargains. Well, now is definately the time you need you night vision goggles. Most people agree that the bottom of the market is pretty close, if not already there. So the time to pick up good bargains is here. Why? It gives the turnaround time to build momentum and a better return for you.
Since the price of oil has dropped significantly, now is a great time to stock up on both high yield dividend stocks such as British Petroleum Prudhoe Bay Trust (BPT) and the Canadian trust of Enerplus (ERF.) I’m not as crazy about ERF because there’s no telling how the new tax laws in Canada will affect the buying pattern for this stock. But it is still a bargain for a short term hold.
But the screaming deals are in shipping. You can grab so many and sit back and let them make you wealthy. Tomorrow I will be featuring the deals in there, as there are so many wonderful high yield dividend stocks to be grabbed.
There are excellent buys in other sectors, too. One of my favorites is HQH, which is a healthcare fund that invests in small to mid size stocks. It’s conservative, and can be sold out for a quick profit at $15.50.
There’s more: Stocks such as GE, a global leader in so many areas of life, is at a P/E of under 7. It deserves a second look. 3M (MMM) has dropped to where it is a great bargain, as long as a sell goes in around its traditional high of the early to mid $90 range. This is even a great time to buy into Johnson and Johnson (JNJ) for a long term portfolio and throw away the key. However, this is best for the new IRA or the kid’s long term IRA. Remember, the markets are still quite volatile, and there could be a bump or two now and then.
Goldman Sacks (GS) to me is hot, hot, hot. Buffet has given it his critical eye and likes what he sees. Charles Schwab (SCHW) has clung stubbornly to its 20 P/E mostly because it stayed out of the risky derivative and subprime markets. The results have been an enviable stock growth. They obviously learned their lessons in the mid ’80’s and their conservative nature has made both their customers and investors happy.
I would be careful of investing in other random traders, however. Rumor has it that other e-traders are in big trouble. And the banking industry is not out of the water yet. But this may be the time to grab some hot deals. Share your ideas here! We’d love to hear about them.
I have never been into the market and would love to jump in now with buying just a few stocks in GE. How would I go about doing that?
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Thanks for stopping by! Of course many factors should determine buying into the market, but if you want to just buy, here’s what you do. Open up a brokerage account at a company such as Fidelity, Schwab, or another brokerage. Be sure to check on their stability. For example, I know Schwab won’t fail as a company because of some recent research I have done. Once you have opened that account, ask a customer service rep to walk you through your first trade. Most online trades now are quite cheap, so the cost will probably be no big deal.
Prepare yourself for further volatility. Make sure this is not money you need for several years. The price of the share may bounce around a bit, but I think in five years you may find yourself happy with the outcome.
Hope it works out for you!