UCS morning update

Could be another twiddle-your-thumb day. Wall Street Journal before the bell update suggest a slow start with some new economic data being released and with Chairman Bernanke testifying before the House Budget Committee today. Do you buy, hold or sell? If you are buying, what do you buy? If you are selling, what do you sell? And if you hold, what are you holding? Here is my take on three industries.

Technology: Buy- most technology companies are flush with cash are weathering the recession well.
Commodities: Sell- take profits; most commodity funds are up 20% or more. I am still angry over oil and gas spectacular collapse in '07 and '08. I have volumes of articles, research, and data that suggest that there was some sort of shortage. In fact, we were not even close to a shortage. The entire market was being manipulated.
Real Estate: Hold- Most real estate funds, companies, and reits have been beaten down mercilessly, there is still a lot of bad paper on and off the market that need to be restructured, sold, auctioned, etc. You may say that this may be the time to buy, but my reply would be only if you are a real estate expert with 100 years of experience. Otherwise, I suggest that you wait.

06/03/09 08:39 AM

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