06-22-2002, 12:16 AM
This is basically my prediction for next week within a few days after the consumer confidence report comes out. Even though there are improvements in corporate profits, the consumer is not putting their money in the market. Several reasons could be due to insufficient job creation, middle east situation, accounting scandals, and mistrust of investment firms. I don't know if anyone noticed by some of the commercials have the "trust" theme in them.
Currently, my money is 25% in long term CDs and the rest in cash waiting for an opportunity to get back into the market. So, I'm posting this message to hear from the brains out there that have something significant to say.
Anyway, one of my recommendations are to look at the banking sector for value stocks. The reason why, is due to the low rates for loans, the consumer continually takes advantage by refinancing and home improvement.
Furthermore, we need to start to analyze the retailers that you think will be successfully this Christmas season. It should be the same as last year or slightly better since the economy is slowly improving, and the consumer is still spending. This is an area you may want to be in before September this year.
I think we should watch the market very closely for the next few months to see if we will have another opportunity like we did after it crashed in 1988 and no one wanted in. I believe the key is to beat the institutional investers, but not to get back in too early and still lose money.
If anyone has any stock picks in the consumer goods or banking center, please list them.
Lastly, I still think the bottom has not hit for the technology sector. Companies are not committed to capital investment on a large scale. I would stay away from this sector and review the situation in a few months to if there is anything really positive.
Good Luck
Mark
Currently, my money is 25% in long term CDs and the rest in cash waiting for an opportunity to get back into the market. So, I'm posting this message to hear from the brains out there that have something significant to say.
Anyway, one of my recommendations are to look at the banking sector for value stocks. The reason why, is due to the low rates for loans, the consumer continually takes advantage by refinancing and home improvement.
Furthermore, we need to start to analyze the retailers that you think will be successfully this Christmas season. It should be the same as last year or slightly better since the economy is slowly improving, and the consumer is still spending. This is an area you may want to be in before September this year.
I think we should watch the market very closely for the next few months to see if we will have another opportunity like we did after it crashed in 1988 and no one wanted in. I believe the key is to beat the institutional investers, but not to get back in too early and still lose money.
If anyone has any stock picks in the consumer goods or banking center, please list them.
Lastly, I still think the bottom has not hit for the technology sector. Companies are not committed to capital investment on a large scale. I would stay away from this sector and review the situation in a few months to if there is anything really positive.
Good Luck
Mark