Rainy day investing – Bullish on Dell and MSFT
October 6, 2008Another black Monday. The Dow Jones Industrial (INDU) tanked this morning more than 800 points to levels not seen since 2004 (although it recovered to end up with a loss of “just” 370 points). Money market rates increase. People, companies and banks are hording cash. For the rainy day. Which is here. Growing stronger and stronger into a major storm.
The Dow Jones Industrial (INDU) has lost 30 percent since its market high. Not surprising, today’s 1248 INDU predictions on PredictWallStreet show that people are pessimistic about the future. 55 percent of the users predict the market will further slip tomorrow. Looking at the sentiment trend, I see that users are more and more torn between one extreme and another. The one-month sentiment trend shows 5 occurrences of extremely positive and 4 extremely down investor sentiments not counting today’s extremely bearish sentiment. Nobody knows what is going on, where we are heading to. One day, there is hope. The next day, some nasty news crash it all.
How do you find any good investments in such a turbulent environment? There are several possibilities. One of them is to go short-term and play it day by day or week by week. This gives you a little more room to adjust to changing markets. You can use help from new financial web 2.0 sites. Faruk Jaffer, Chief Investment Officer of Index Gurus, just published an article comparing some of these sites in the article “The Modern Day Crystal Ball“.
My stock picks for today: Up on Dell (DELL), Dow Jones Industrial (INDU), and Microsoft (MSFT). You can check on my predictions at http://www.predictwallstreet.com/account/mypws.aspx?user=celia728.
Celia's stock picks and predictions on www.predictwallstreet.com.
What did anyone expect? The investors have no confidence in these corrupt politicians. This bailout is just one more example of the indivisible handjob stroking irresponsible CEOs and CFOs with billions so that they can run the American economy even further into the ground. So much for Keynesian economics. If the goal is to stimulate the economy, why not give the money directly to the American taxpayers? The government could do twice as much good for the economy by returning half as much money (as the bailout requires) directly to the hardworking American taxpayers. A bird in the hand is worth two in the bush administration.
Celia,
Thanks for citing my article, “The Modern Day Crystal Ball.” Your readers should know that I have moved the article to my blog. The article can be viewed at the following url:
http://indexgurus.wordpress.com/2008/10/03/the-modern-day-crystal-ball-2/
[...] Celia’s Investing Blog discuss an article written by Faruk Jaffer called “The Modern Day Crystal Ball.” [...]