Today's Market
by Dr Invest

Yesterday, I blogged about CATM being oversold. Having fallen 12%, I wanted to sieze upon a buying opportunity. Early this morning, I placed a STOP-BUY on CATM. CATM opened at $25.00 and I set a STOP at $25.20 telling the broker to BUY when it reached that price. Now the purpose of not buying CATM immediately, was to give CATM room to fluxuate, and if buyers were really eager for the stock to move into an uptrend. This is good for an investor because emotions are removed and the buy is made on the rise of the price of the stock. If CATM had advanced 3% to 5% my STOP-BUY would have bought a position in CATM and I would have been sitting on a 2% to 3% gain. At noon, CATM had fallen to $24.81 closing at $24.06. Analysts consensus have recommended CATM as a STRONG BUY, suggesting a move in price from $25 to $32.75 within the next 12 months. This is a 31% gain which would be real plus in our current economy.

One stock I did purchase outright early this morning was WMT or Walmart, investing 10% of my portfolio into WMT. WMT is up .85% and I feel pretty confident about this position. You will remember that we need to invest 33.3% of our portfolio in STOCKS. I now have a 10% position in WMT and still need to invest 23% of my total portfolio in a STOCK POSITION.

Looking at our portfolio as presently positioned, the 1/3 invested in BONDS as illustrated by the orange is fully invested. BND has done poorly, but who can compete with the FED. TIP is a Treasury Inflation Proteced Security and performs best where there is an expectation of inflation. TIP has performed well and with certainty, the news reports our new president will be Obama. With the expectation of continued money printing and increasing government debt under the Obama presidency, gold will likely be a hot item tomorrow and TIP should continue to perform well even if BND doesn't.      I also purchased WMT (Walmart) and still have CATM on a STOP-BUY. TGT (Target) is another stock of interest. Both WMT and TGT stock have grown over 20% as of this date. Both should do well as we move through November and into December. I am waiting for a good entry point in the purchase of TGT. Today the market climbed over 1% and the markets will likely increase through the remainder of the week.

 

The gold ETF, IAU, climbed 1.89% today. Even with a gain of 1.89%, IAU may still be a real buy. Should BND continue to decline in price, I will sell BND. My gain to day for BND is .59%. You will remember our first rule in investing...don't loose money! So I don't want to ride BND into a loss. For specific information, my STOP-SELL is set to sell BND when it falls to .30% of its original price.

 

TROUBLE AHEAD?

 

Who can know what lies ahead. No one believes that we will have a lively and productive economy, instead; there is a belief that we will continue in the misery of financial doldrums dipping into the negative and rising into the positive and returning back to the negative again. This kind of pain will continue until a fiscal cliff, another unplanned war, a collapse of Eurozone country, or overwhelming debt pushes us back into recession.

 

Should we press onward into a recession, expect a 20% to 30% decline. You can control your losses by using a STOP-SELL. Unfortunately, you can't stay out of the market. If you are simply "holding cash" the government will devalue your dollars. You will need to be invested in such away, that your money can work for you and grow as the government prints more of its fiat currency.

 

Marc Faber, Jim Rogers, Lacy Hunt, John Hussman, and John Mauldin are just a few economists who suggest holding gold (not more than 20% of your portfolio), real estate (I suggest rental properties that generate income, unless you are in a depressed real estate market.), and commodity oriented stocks. For example, people have to buy food... K is Kellog Cereals at 8%, look at the long-term chart and you will see a consistent return. Another is DPS (Dr Pepper Bottling) that has returned 14% at this time. These stocks are not as flashy as a stock returning 20% or 30% but they are consistent longterm performers and can be solid investments. I have already mentioned the DOLLAR STORES, like FDO, DG, DLTR,WMT, DOL.TO and TGT.

 

Remember...don't loose money.... use a STOP-SELL to protect yourself against loss.

 

(note: the above information is for entertainment purposes only and not to be used as investment advice.)