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Patience is King

By Steve Abraham on Nov 17, 2007

The US stock market and the US economy are hanging on for dear life in my opinion. It appears that the mortgage crisis combined with high oil and gas prices is going to at least slow economic growth, possible cause a severe recession. Big cap tech is no longer a safe haven unless the Fed changes it’s stance and starts to lower again.  However, if you look at the charts of Apple, Google, Rimm, VMW — they all have broken their uptrend on huge selling volume.  The only place to be long is consumer staples  - PG, JNJ, MO, KO, PEP, and even something like United Health Care.  The money has to rotate out of the big cap tech names and into these safe stocks until we get out of the woods.  If you want to speculate, then I like JASO or even wait for the VISA IPO. 

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This entry was posted on Saturday, November 17th, 2007 at 9:32 am and is filed under Annotated Analysis. You can skip to the end and leave a response. Pinging is currently not allowed.


7 Responses to “Patience is King”


By Aaron on November 18th, 2007 at 10:07 am

Love JNJ and UNH right here. Both of them are undervalued on a historic basis and are just starting to break out technically. I think they both have some room to run in the next few months.

By sach on November 18th, 2007 at 8:27 pm

Hi Steve,
Not to get away from the topic but this question is haunting me: what is the best way to get into VISA IPO online without getting a real broker?

Thanks

By Nabloid Investing on November 19th, 2007 at 1:09 am

I really don’t think being a staunch bull is a great idea over the next little while, unless you pick your sectors really carefully. With the USD falling so dramatically, inflation is going to ramp up and hurt. Only certain sectors will do well. Ie, Precious Metals (mining/exploration), Food, Natural Resources (Oil, water, energy in general), healthcare (catering to aging boomers). Some companies in any industry can do well if they are innovative enough, but overall I’m definetely no ‘bull’ when it comes to the next few decades for the U.S. economy… the USD and the retiring of the boomers may be too much…

By Anonymous on November 19th, 2007 at 12:18 pm

Found this pretty interesting regarding the visa IPO:

“There may be an opportunity to profit pre-IPO. Check out National City
Corp (NCC). They own an 8% share in Visa USA, which will be a 4 - 5%
stake in the new public Visa. Perhaps the Visa IPO euphoria and a Fed
rate cut or two will break the stock out of its downward trend. As a
reminder, the market looks to the future, so any Visa IPO benefit will
most likely be felt before it goes public, not after. So, this is a
pre-IPO buy. As always, do your own due diligence before making a
purchase, but it may be worth a look. Check out the article below for
more information. “

By Gina Fay Rice on December 19th, 2007 at 4:20 pm

In 2005 interest rates were at an all time low. And home buying was also at an all-time low. These too combined equals recession alone. “King George” isn’t doing anything to help either. I hate to say it, but Americans may become the next immigrants. But if they want to keep America strong, stock investing is a must. Right now, wizetrade suggests investing in energy and oil. But at the same time, if we do that, then we will deplete and obsolete all other industries, especially service industry.

By Katie Hurley on December 26th, 2007 at 3:58 pm

Patience is key to successful bull trading. Wizetrade shows slows for those trades/

By Eric on February 7th, 2008 at 1:45 am

Out of all the stocks I see real value in rimm. It’s trading at a bottom and is a real cheap stock. Sales are continuing to grow in row and the time is right for new inovations. When you look at the numbers the stock is on a 30 to 40 % sale.

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