Tuesday, August 31, 2010

Watch for a Bottom

Finally!! The worst August for equities since 2001 has ended. August was certainly not a good month but its time to put that behind us and continue looking forward to the future.

On Tuesday, consumer confidence rose modestly and home sales were up. That is pretty good news however, the pessimism of the market brought down mid day gains to just around $5. This leads me ask, if the economic reports continue to be bullish this week, can traders change their view and turn bullish? We will have to wait and find out.

In the mean time, you should be picking up some beaten down stocks that are rather conservative, large-caps such as JNJ, INTC, KO, and JOYG.  These stocks all pay a decent dividend that can help you wait out any further correction.  These types of stocks are going to be a safer bet than a company with volatile sales.

Many traders and strategists are predicting the market to be hitting a bottom within the next week or so.  We think you should take it easy and not flip so fast because if the market isn't finished with its decline, you can be burnt.  That's why we are suggesting the types of stocks that were listed above.  They will withstand the decline and/or go up with a resumed bull market.  Safety and security, as well as profitability is what we are going for at the moment.

**Keep a look out the rest of this week when we will announce the Stock of the Month for September

Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.

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