Quote:
Originally Posted by CoachKandSportsguy
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!
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Yes but the age old question that has never been answered for the long run...how do you know when a specific stock or even segment will make a move? Without insider information you are only guessing. Regardless how accurate your rear view mirror is, it is still a rear view which has no bearing on the future. If all the super computers on the planet cannot predict where the market will be tomorrow, how can we?