The agreement on rescue package is almost complete with House voting today & Senate on Monday.....
It IS important to recognize that economic landscape has changed worldwide...which will affect stock selection & trading decision......
There is an agreement that worldwide economic growth is severely challenged...due to falling real estate prices all over....
Banks are in trouble all over with holding securities which has lost substantial value...so they all need to improve their deposit to loan ratio as approved by banking regulators in respective countries......
Now..... it all comes down to which sectors are the beneficiaries of this economic package....Companies will be able to continue their growth when credit is eased up......
Housing will be the biggest beneficiary of this package...so home builders looks like a great investment....
Mortgage lenders will also benefit....
Retailers will benefit....
Technology companies will get on growth path again.....
Due to economic slowdown...Bulk shippers are severely affected as is reflected in current prices...
Infrastructure companies MAY be negatively impacted.....
Ag MAY be negatively impacted as there has been bumper crop in India...which will ease prices on Rice,Wheat etc......
So...you can see that there are many cross-current which IS affecting many companies....
Q3 ER may be very challenging for many companies which will come out in Oct......
So...the safe way to be in this tough market is to be broadly diversified in many stocks.....cutting weak stocks from your portfolio is a good strategy....
IBD & Many technical outfits "highlights sectors"which IS strong.....no sense in paying for these services...if you are not going to follow their recommendations....
There IS such a thing as WEAK/STRONG stocks/sectors.....
So..pay attention to strength in sectors /stocks......
Admitting to a failed strategy is important for recovery in lost equity.....
It is never business as usual...when it comes to changing sectors/stocks....
IBD also teaches to cut loss @ 8%......which is a good way to prune bad picks......
Good luck with your OWN remake of your portfolio and future picks......
Markets does give a second chance to those who ADAPT.......
BLOG does NOT give buy or sell.
Saleem
12 comments:
Hi Saleem,
Not sure what to say. Deal is done. Who knows where the market will go. Many a trader is dumbfounded. TA & FA have no basis or reason. Did RIMM deserve a 30% haircut? No. Shorts will try to bring down the giants, one at a time. Saw this before. Long ago. Hopefully the market will gain some strength from here. Still no gas in ATL. We do have some but quickly selling out with panic buying.
Have a safe week.
Hi Standards,
Bear market are very difficult & unpredictable.
Margin of error is non-existent...
Thus RIMM got the drubbing.
I agree FA/TA has NOT worked...but FA always comes through eventually...
Yes...high priced stocks are "extremely RISKY"....take a look what happened to POT,AGU,TRA,MOS......
I will continue to be well diversified in many sectors ...where I have done some homework...for a "quick GAIN"...
This is NOT a market to HOPE for extended gains....
Hope that gas shortage is over by wed !!!
Saleem
I recently invested in the real estate and discovered how important role formal agreements and legalities play in it. I never expected it to be such a tedious task. Contracts seemed to me pretty simple at the first glance but the whole procedure got a bit complicated later on. After getting done with groundwork of financing, settling down with an area of investment, sending the letter of intent to the owner, etc I was all ready to put everything in a contract. Initially I thought I will be able to manage the whole procedure all by myself. But later I decided to take the help of some real estate consultant or attorney for it as it gets very difficult for first time buyers like us to deal with all the paperwork. . It’s very important that everything is covered without missing out on anything. As contract plays an important role in protecting huge amount valuables.What I have learnt from my experience is -Don’t rely on verbal agreements, make sure it’s written down and part of the contract.For more view- realtydigest.blogspot.com
Hi Saleem,
Sol looks poised to go lower. I would like to average down, but the basement does not have a bottom yet. Sol has a base around 13, yet it may break down. What do you suppose a good entry point is if 13 does not hold?
Stand Msg Board Saleem
Nothing has a bottom
Do NOT buy anything till we get a very firm bottom
YOu may miss a breakout but you will NOT miss a further down turn and I mean nothing is sacred!
As for the DRYs it all depends on the shipping rates per day holding up and I do not think the world will totally go in to the crapper.
Drys are some what safe like DSX which has futures contracts with a one year lock on daily rates.
Peace to all LOOKS like a RED day
Look like Congress did not pass the resolution....
Hi Standards,
SOL is showing relative strength in solar ...Lately.
If I want to buy something...I buy without worrying about bottom....
I am NOT smart enough to know about the low of the day either....
SOL has not breached $11.70 area ....will it go that low...I do not know.....
I do not mind waiting with LOWER than purchased cost...because markets do turn UP on a dime ...whenever they want.
Good luck with your own comfort level....
Saleem
Hi Realty Rider,
Welcome to my BLOG.....
Thanks for posting a personal take on verbal vs written approach in real estate.
I concur with your thesis.
Saleem
Hi Saleem,
What's your read on CSIQ? Down more than 14% today?
Thanks.
DM101
SALEEM
Good Day sir
Wow this is rough
Where is the bottom
Cheers to all we need it
C
Hi Dm,
Markets are rough....so it is beeter to go with relative strength stocks....
CSIQ has been weak for few months???
Saleem
Hi C,
Some days it just pays to find other things to do than watch the market. The only thing I know is that all this will pass in time. There is nothing new under the sun. We just have to wait.
Better days ahead.
Hi C,
So far bottom has held on S&P 500 which is a good thing.....
We are oversold big time NOW.....
Today's LOW has a very good chance of holding on S&P 500.....imho
Saleem
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