Skip to main content

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

Comments

Post a Comment

Popular posts from this blog

Morning Update

By Rick Walter Still working on putting together a strong biotech portfolio. Here is a good general article on the state of the biotech industry that was posted yesterday on the online Wall Street Journal's site- Biotech Stocks Hot Right Now, Ho-Hum in the Long Run.
Post a Comment
Read more

Semiconductor Conundrum

By Rick Walter Last weekend I worked on a new semiconductor portfolio because I thought that although the price to earnings ratio of many of the companies in the industry are still too high (P/E's of companies in this industry typically runs very high), there still may be an opportunity to take a position in the industry and make some money. Although knowing what companies to buy in this industry may be the ultimate conundrum. This sector is ferociously competitive and over the years even the best companies, such as AMD , Rambus and Novellus Sys have succumbed to the price pressures of the competitiveness in the market. Of course, most of the pressures in this market have stemmed from the relentless drive of Asian chip manufacturers quest to completely dominate the market through a combination of foreign currency exchange rate manipulation of the Renmimbi (Yuan) and cheap labor. Their domination of the markets has also been helped by a global market with an insatiable demand for...
Post a Comment
Read more

Goodbye Mike

Before I get going today, lets take a moment to honor an American Idol, a Music Titan , and a Perfect Representation of the Gods of Music ; I would like to send my condolences and respect to the Jackson family for the sudden passing of Michael Jackson . I am profoundly saddened by his death. I was trying to ignore the whole event- news of his death . It seemed like some sort of bad dream at first. However, reality has set in this morning and have left me almost speechless. Goodbye Michael! You will always be missed! 6/26/2009 9:41 AM
Post a Comment
Read more