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Parking Lot Money Hates Volatility
storm888
Posts: 11,701 ✭✭✭
Today's violent swings in PMs will chase many of the cash-parkers out.
By the end of today, $500-billion+ will have been redeemed at sundry
mutual funds, this week alone. There is more than $1-trillion+ sitting
in retail-consumers' money-market accounts.
There are strong signals that "bargain hunters" are starting to look
at the crashed securities market.
The one-year charts of X, AA, ACH, even FCX look compelling.
I am NOT making a general BUY call. But, soon, we will see a repeat
of the 1987 mini-recovery. I rode that one to huge profits, and I expect
to do the same in 2008.
By the end of today, $500-billion+ will have been redeemed at sundry
mutual funds, this week alone. There is more than $1-trillion+ sitting
in retail-consumers' money-market accounts.
There are strong signals that "bargain hunters" are starting to look
at the crashed securities market.
The one-year charts of X, AA, ACH, even FCX look compelling.
I am NOT making a general BUY call. But, soon, we will see a repeat
of the 1987 mini-recovery. I rode that one to huge profits, and I expect
to do the same in 2008.
Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
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Comments
It will go lower, BUT that likely makes it even more of a bargain.
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There are several nice things about some of the energy companies.
They don't need oil to be SUPER HIGH in order to make HUGE profits.
They have TONS of cash.
They pay dividends.
i might sink a bit into PWE now and think about X. i don't know if the 1-yr est. on yahoo is correct, but it looks nice.
C
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I would not rely on YHOO for numbers.
Use your online brokerage numbers.
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They key - for me - in bargain hunting is to look at:
How much CASH these beaten-up companies have.
What does "book value" look like.
What kind of profits these companies have been making.
Is the dividend interesting.
.........
While LOTS of stuff looks like it's on sale today, it is still good
to be cautious and build the positions SLOWLY.
Next week will be a mix of retail-redemptions AND government action.
........
When stocks turn up, PMs will tank.......temporarily. Good time to start
building a little PM stash; slowly.
Man, lovin' X at 21% of its year high with 1.45 in yearly dividends and a 4.5 pe...sweet. AA @ 25% of its year high trading at $11 with a buk a year/share dividend is no slouch either and a poor mans shot at some dividends. You're a good picker storm man. PWE has a scarey pe of 39.5 and fcx might lag for a while longer but steel and aluminum will be the first to rise methinks and they are looking pretty healthy. AA: "Hello, my name is Mike!"
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Actually, historically, I am one of the WORST pickers on the planet.
I am a highly-skilled trader, AND a VERY unreliable picker.
Happily, one only needs to "pick" more right than wrong to make money.
I got lucky on the financial picks - all SHORT - last year. BUT, I am NOT
generally a good finder/picker.
Trading I rank high, picking not so much. So please do NOT rely on my "picks."
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C