There seems to be little incentive to buy the market for possibly the rest of the year. I have sold MSFT, EMC, POT, and raised my cash position to approx 1/3 of the Beaglefolio.
Charles Schwab says it will likely take another year for the average investor, looking for confidence in jobs and the economy, to get back in the market.
I have concerns about the health of the economy. Josh Kosman, author of “The Buyout of America,” tells David Weidner we’re due for another financial crisis and private equity will be at the center of it.
Its not that I believe that the stock market is about to crash, again. But you cannot deny, stocks are down, bonds are up, emerging markets are being hit and safe havens are back in fashion.
There are allot of exciting products out there that can drive some tech stocks. Despite that Motorola’s new Droid phone is no iPhone-killer, the iPhone is under attack. Phones will be the first thing emerging markets will buy. So some tech stocks that benefit from the wireless communication industry will do well, even in a down market.
And with all this wireless communication comes data storage and distribution. That’s why i like EMC and Information innovator Teradata with its smart management, big-league client roster and unrivaled expertise in data-analysis applications. One analyst suggests that Teradata shares could jump as much as 80% over the next two years.
See Analyst Nick Hastings Video Report
In conclusion, I am looking at a straddle* on GE. Investment in BRIC, and purchase of some lowlying high quality stocks. If stocks get punished, I think there may be another ‘high quality’ buying opportunity.
*FYI, a straddle is an investment strategy involving the purchase or sale of particular option derivatives that allows the holder to profit based on how much the price of the underlying security moves, regardless of the direction of price movement. Source: Wiki