Monday, February 2, 2009

Global Crisis, Macy's cuts Jobs and Government Backed mortgages

World Economic Forum in Davos looks to be a bit of a bust with no real solutions and a lot of hand ringing.

Macy's is Cutting 7'000 jobs as it predicts a big dip in sales.

Let them eat cake, and government backed mortgages.

Sunday, January 18, 2009

Is it time to run with the dogs of the dow?

With the market so low and so beaten down it might just be time to "Run with the dogs of the Dow". "Running with the dogs of the Dow" is an investing technique were an investor puts money into 10 stocks (out of the 30 in the Dow Jones industrial) that have the highest paying dividends. The reason for picking the highest paying dividends is they are thought to be the most beaten down stocks of the Dow Jones and thus will have the greatest possibility of comeback. Usually the "Dogs of the Dow"stocks are picked in late December, but with the market so low and with the financial situation the way it is the rule book has to go out the window.

If someone wants a conservative way to make the best out of this bad financial situation, then the "Dogs of the Dow" technique is something to look into. It is important to do the homework on any company though, even Dow Jones companies, before buying stocks. we have to keep this in mind and that there is no guarantee of a return on our investment, as we all probably know, so do your homework before investing. For a list of the 2009 stocks that are at the bottom of there Dow here is a link

Monday, December 29, 2008

The double edge sword of penny stocks.

The penny stock can be your best friend, or your worst enemy, as a lot of us might know from experience. For those who aren't familiar with penny stocks they are a speculative security that will usually sell below $5, have a very low market cap and usually are traded on a OTC stock exchange like pink sheet or otcbb (although they can be on the major exchanges as well). Definitions vary on the exact definition of what a penny stock is or isn,t, but the guidelines above are a good guide for those that are just starting out. The main thing you need to know is that they are very speculative, and if you want to be involved with penny stocks you have to do your homework.

As a risk taker, and someone who dose his homework, my opinion of penny stocks is positive and they are worth the time. My philosophy on it is not necessarily get the next Home Depot or wal-mart, but to just to make modest gains with a volatile stock. With lower priced stocks, a little gain can get you quite a bit of profit, but i would never invest without obsessively researching a company first because that gain could just as easily be a loss. Penny Stocks are more of a gamble than what you see on the big exchanges, but with a bigger gamble can come more profit and that is what I'm looking for in a penny stock.