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InvestmentMAGE
InvestmentMAGE vip
P&P Score: 99.93   Points: 625.30   Accuracy: 42.64%   Average Pick Score: 1.05   Annual Return: 11.43% (39.30% since 12/17/08)  

InvestmentMAGE's Blog : Bullish

Date August 15, 2011    Comments Comments (2)    Rate this post Recommend This Post (159)   
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Free Options Trader Guide

 Bullish


 


The turmoil in the market last week really should have not been a big suprise to the twenty-five folks who read my previous blog post on Brinkmanship.*


 


If you are a value investor, you should see this as an opportunity, Warren Buffett does.


 


I would recommend during these uncertain times, Large Caps, with “wide moats” and a good balance sheet. Consumer Staples, for safety, high yield bonds, and dividend producing stocks. Also, if you believe any of this talk about infrastructure, an infrastructure ETF.


 


Since the Fed is going to keep T-Bills at a low yield, this should make utility dividends much more attractive.


 


Recommendation:


 


ETFs:


 


XLP, PZD, XLG, JNK, VIG


 


 


Caveat: There could be more turmoil.


 


Invest wisely,


 


MAGE


 


 


* If you missed it, you can find it here:


http://tinyurl.com/InvestmentMAGE


 


Disclaimer: Do your own homework, you are getting advice from an avatar. That's not even a real picture of me. I may buy or sell any of these at any time without notice.

Tags : BRINKMANSHIP   XLP   PZD   XLG   JNK   VIG   INVESTMENTMAGE   VALUE INVESTING   VALUE  

2 Comment(s):

Author JohntheWizard     Date August 15, 2011 02:25  Edited: August 15, 2011 by JohntheWizard Abuse this post Report Abuse
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Mage,

I missed your earlier blog on Brinkmanship. Brink originally is a Dutch word and stands for the village square in the center of a village but also for "edge". Since 1956, Brinkmanship is a Dutch word too, derived from its use in English as introduced by J. F. Dulles. A game of deterrents in the Cold War until someone "chickens out".

To me, Investors (Speculators) are just simple cowards. When needed and times get difficult, they just run away. When not needed, they are your best friends. Wall Street doesn't really care about Main Street. It will borrow you their umbrellas when it doesn't rain and the sun is shining.

To use your words,

Invest wisely, but I am not sure whether wisdom and the stock market are compatible and on the same plane.

John
Author InvestmentMAGE     Date August 15, 2011 21:19  Edited: August 17, 2011 by InvestmentMAGE Abuse this post Report Abuse
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JTW,

Thanks for the background. I was trying to analyse the game of chicken the house of representatives was playing. I chose the term "Brinkmanship" because in Chicken only the participants can lose. In Brinkmanship, everybody can lose, as sadly was the case here. S&P clearly cites "political brinkmanship" as a primary reason for the downgrade.* So it looks that I was spot on in my analysis.

Ironically of the three comments I got on my post two chided me, one accused me of "trying to cause a panic", the other claimed, "It's not a game of chicken when you know the outcome." When I asked him what the outcome would be, he did not respond.

Cordially,

MAGE
*I googled "S&P Brinkmanship" this morning and got 500 hits, I googled it just now and 633,000 hits.
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