Quote:
Originally Posted by HandyGrandpap
Great post Coach!!!
Rates will eventually come back down. Now is a great time to purchase those equities with decent yields and perhaps upside potential. Any suggestions for consideration??
I will throw in a few to start the list: 1) Utility stocks are down about 30% with very decent and safe yields. 2) If you want to take some risk look at CVS and HE as both have had recent events that resulted in pull-backs.
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HE is a very high risk investment. . . most likely looking for a buyer of distressed assets.
Utility stocks as a diversified ETF makes the most sense, as any single stock has a much higher event risk . . . such as HE
CVS and many of the corporate self funded benefit plan managers are starting to get questioned about the growth in claims and total cost, as its been growing faster than inflation. The benefit managers are claiming patient privacy laws as a way to stonewall giving out information to review management effectiveness.
The SP500 has evolved into mostly near monopoly and oligopoly economic players, so the mega cap stawks of the SP500 will perform the best over time.
Avoid high debt laden corporations.
David Rosenberg @EconguyRosie typed:
Bob Farrell’s Market Rule #8:
Bear markets have three stages –
1. sharp down
2. reflexive rebound
3. a drawn-out fundamental downtrend.
We just moved into the third stage.
Personally, I am researching how to identify market rotation between ETF sectors. . I am in the middle of creating a server database with all the financials from EDGAR stocks for the past 10 years, courtesy of their quarterly extracts of filings, so that I can look at sector fundamental information as well . . .
I am threatening the TV stocks club with my presence!