I Eat Bear

I am not saying I have done everything RIGHT. Far from it. Then again, there is an abundance of PAIN going around, and I am not so very much below the AVERAGE JOE.

Yes, I built LARGE volumes of stocks doing well two years ago. They have taken a BEATING, but when money was good, they were LEADING the market.

So, this is what I am going to recommend, so we can get back into a LEADING mode. No, I am NOT going to recommend specific stocks for you, as some I have before, and I am finding a few new ones to test myself. Besides that, you need to do your OWN research.

What I am going to do is tell you HOW to do it.

First, do not sell your past winners at bottom prices we have now. You DO want to hold LARGE positions in them, no matter how much you may have lost so far. You MAY have to trim a few,,,, SLIGHTLY. Less than 20% of your total investment in them. Whether you have to sell to do the other recommendations or not, will depend largely on your available CASH.

Secondly, I want to remind people of TWO VERY IMPORTANT ITEMS. The first, of these is you came in naked, and you will go out not much better. No matter how much you accummulate in life, it will do you no good at all when you are dead,,, and sooner,, or later,, you will be. Yes, it is an UGLY FACT. You will die. Rich or poor, will not matter to the Grim Reaper. I could quote some biblicals that state it is harder for a rich man to get to heaven than for a camel to get through the eye of a needle, but like much of biblical, it is open to speculation, and interpretation. BUT, the second part of this is there IS LIKELY TO BE A TOMMORROW,, AND, DAYS, AND YEARS AFTERWARDS, for most of us. So, to fail to plan for that, would be short sided, at best.

But, young or old, does not matter here for the rest of you, who do want to find some financial security. Yes, if you are older, you have hopefully done the FIRST step. Find, some GOOD companies, and stick with them. Build in the GOOD times, and trim in the BAD ones. But, definitely, KEEP a LARGE share in them.

Then there are two other strategies not to be ignored, especially in these times. And, these are the best times for investments in these, in the last 50 years or more.

One, invest in high dividend stocks. Anything with a dividend over 5% right now is a candidate. Avoid anything with a dividend of over 40%, unless you can handle the risk associated with it.
Yes, some with dividends that high, ARE indeed good investments, but the chances that dividend is sustainable is slim. Still, they will be the dividend stocks of the FUTURE, and there will be one,,,, if they survive. They will. I would bet dollars to donuts on it.

Secondly, this is the world's WORST time to FEAR penny stocks. Actually, this is the BEST time for it. Do this with great care, and pick a BASKET of them, 5 to 10 MINIMUM, and 20 is not out of the question. Count on it, you WILL have LOSERS. But, if I am CLOSE to right, you will lose EVERYTHING on TWO, and gain 800% on the bulk of it,,, in TIME. YES, you do have to WAIT. Two to three years, minimum.

Bear markets do some good for all. It makes some things cheaper. It also shows that you are OVER-INVESTED, in some stocks, or sectors.

In general, there is ONE undying law in stocks.

MORE SHARES,,, is ALWAYS,,, better.

You may have to pull back, to build more shares later. And, there is NOTHING, to replace diversity.

The market will be VOLITILE. Count on it,,, in ALL sectors.

Personally, I would avoid financials, housing, and retail, but that is just me. You may find a GOLD MINE, in them. But, if I was YOU,,,, with all the investment the government has been making in defunt companies, a GOLD MINE, might just be the ideal investment.

I said I would NOT recommend stocks, but to follow this thought, (or lack thereorf), check out AUY,GG, or KGC. They are some premiere gold miners.

My PERSONAL best pick, remains, BHP. It is not the best market performer, but it is a LONG term WINNER. But, as a SPECULATOR, I like SHIPPING, especially, dry bulk carriers. Why? It is just too cheap, and entry barriers, are just too high. My pick, is TBSI. No dividend,, yet. Enough ships already, that is just a matter of time. EXCELLENT management. Yes, it is RISKY!

But, temper your portfoluio, with dividends, small caps, and YES, some risks. But, do keep large amounts of those that are sure to do well over the long term, and that may mean some bigger companies.

You, and I will come out of this ON TOP.

I GUARANTEE it.

If I live long enough,,,,,, and I intend to. The market guarantees nothing, and neither does or did God, (depending on your belief). Personally, I believe this. BOTH, will try your patience, and NEITHER, will give you more than you can endure. I have FAITH in one, and HOPE for the other.

Bless you, and yours. It will NOT be easy. We have that promise,,, from BOTH!

Comments: View Comments |  Friday December 26, 2008