This is where I was going in my previous post.
Remember the "New Economy" BS from the dot com era? There is going to be a new economy alright. Finance, Insurance, and Real Estate is going to see its employment contract. The market will direct employment and opportunity to where it is needed.
Get there first.
------------------------------------------------------------
The economy might have gone through a bout of credit contraction, and that bout might last a bit longer, but at some point the Fed and Treasury's actions will have the desired effect. I remain long high dividend paying energy stocks and Gold. If/when the Fed/Treasury succeed I believe that this is the place to be. I know Treasuries are the darlings of the Market now, but do you really want to own a security with a .25% coupon with 4% inflation? Sounds like a government guaranteed loss to me. Of course, this where we all should have been in August...
Speaking of Gold. I don't give investment advice in this forum. Gold, is a hard currency as well as a commodity and I am not precluded from discussing Gold. So...
Gold, unlike Worldcom or Enron, will NEVER go to zero. Too, Gold will never pay a dividend nor interest. Gold is a store of value, not an investment. One ounce of Gold will only be worth one ounce of Gold. Therefore, it is all in the price you pay whey you buy. Good luck with that. I always try to add to my Gold position after periods of steep decline.
Good Luck!
Mentatt (at) yahoo (d0t) com
4 comments:
Where exactly are you finding high dividend-paying energy/oil stocks?? XOM, COP CVX didn't pay much before and probably still don't. I have T (not an oil stock) and TEG (NG distribution). They are around 5-6% yield now. But name for me one oil company or any oil-service company that pays a real dividend, please.
British Perto pays over 7%, and Royal Dutch Shell pays nearly 7%. The MLP's pay big time, and have been killed.
I would not add positions now, and I make no specific recomandations. I have more to say in my next post.
The vast majority of people in this country can't afford gold. Plus it's impractical. Try using an ounce of gold to buy groceries or gas.
I've used an ounce of silver to buy groceries before. Easier to get change from. ^_^
Post a Comment