These 5 Stocks Will Soar on China’s $586 Billion Bailout
Source: http://feeds.feedburner.com/~r/ContrarianProfits/~3/449944738/8232Posted on Tuesday, November 11th, 2008 | In Market Commentary
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Dear Value Seeker, Today the world honors its military veterans. Veterans Day falls on Armistice Day, the day World War I officially ended. The 40 million casualties of the “war to end all wars” is perhaps still the rawest example of humankind’s ability to screw up. Ninety years on, we are still screwing up. Fortunately, today’s losses are focused on corporate balance sheets and stock indexes rather than on the battlefield. At least we have the Fed and the U.S Treasury looking out for our best interests. Americans can sleep tight knowing Ben Bernanke and Hank Paulson are unloading their heavy artillery at the credit crisis. Of course, the effect so far has been minimal. And their ammunition is depleting rapidly. Already, the government has spent all but $60 billion of the first $350 billion tranche of Hank Paulson’s $700 TARP (Trash Asset Removal Plan). And the corporate dole queue is getting longer. |
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Stocks have been hammered for the past 5 years – down 10% according to the S&P 500 index. Gold, meanwhile, is up about 100% during that time. What few Americans realize, however, is that there’s a unique gold investment, created and issued by the U.S. Treasury Dept., which skyrockets AFTER gold prices soar. Last time conditions were this good, it went up 665%… and it’s beginning to soar again right now. |
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General Motors (NYSE:GM) has muscled its way into line. American Express (NYSE:AXP) couldn’t get access to the funds as a credit card company… so it became a bank holding company. Overnight. Unsurprisingly, the Dow is down over 200 points at the time of writing. We are well on our way to the worst year for stocks since 1937. America’s only savior now is president-elect Barack Obama and his so-called “brain trust.” David Fessler at Investment U is optimistic about Obama’s chances. He says David picks seven infrastructure and clean energy companies set to profit from an Obama “New Deal.” Meanwhile, Money Morning’s Martin Hutchinson says Martin picks five companies that stand to profit. Of these, he says Brazil’s iron ore producer Vale (ADR:RIO) is the best value buy right now. Given the widespread panic in the markets, Andrew Snyder at Today’s Financial News says investors should look for companies with a solid long-term strategy. This puts the company in a great position to take advantage of a widely anticipated “Obama boom” in alternative energy. Finally, Greg Guenthner says small caps often lead the charge toward a market recovery. Traders punish small-cap stocks during a bear market. But small caps bounce bank strongly once the market has found a bottom. Kind regards, Will Bonner, Publisher, Hidden Value
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