Stocks are whipsawing again today as Mr. Market digests a coordinated worldwide rate cut. After opening 200 points down, the Dow zoomed to a net gain of 150 points before sliding back into negative territory.

These violent swings can be devastating for the short-term investor. But Jon Herring says market volatility is handing long-term investors a once-in-a-generation chance to buy world-dominating companies at bargain prices.

Jon recommends seven stocks that are price leaders or have pricing power.

The feds are pulling out all the stops to end the rout in financial markets. On top of the Hank Paulson’s pork-laden bailout bill, the Fed is pumping hundreds of billions into the global financial system. It has even started buying up short-term commercial paper.

Today, the Fed joined other major central banks in a surprise and unprecedented coordinated rate cut. Still, US stocks open sharply lower.

William Patalon III says the Americans “have less money to spend … and are spending more for less.” He gives three reasons why the US is plunging into recession.

Eli Outbids Bristol; Carmax Crashes; IBM Could Miss Estimates; Micron’s Loss; Cereal’s Sugar High; Canada Drives Toyota

As the financial sector continues to roil with uncertainty and unease, Kraft Foods Inc. (NYSE:KFT) has been selected to replace American International Group Inc. (AIG) in the Dow Jones Industrial Average, reports Jennifer Yousfi in Money Morning. AIG stock plunged Thursday after the U.S. Federal Reserve’s $85 billion bailout of the flagging insurer, taking the 112-year old blue-chip stock index down with it.

Wall Street is on its knees, and the taxpayer is on the hook for well over a trillion dollars to prop up the financial system.

Meanwhile, the wider US economy is sliding into a recession.

William Patalon III says there are four solid ways to protect your portfolio from these forces: 1) Buy dividend-paying stocks; 2) Buy gold; 3) Buy companies focused on overseas market; and 4) Don’t panic…

Even the most savvy investors have been stung by this year’s equity meltdown. Warren Buffett’s investment vehicle, Berkshire Hathaway (NYSE:BRK.A, BRK.B), is down 24% from its peak in December 2007.

Alexander Green says BRK’s drop creates an outstanding buying opportunity. Buffett has an unrivaled track record as an investor. He has always followed a disciplined value-based strategy. And this still holds true today.

BRK.B shares are trading at $3,860, down from a 52-week high of $5,059. This makes them a no-brainer buy right now.

Since March, shares in Warren Buffett’s investment vehicle, Berkshire Hathaway (NYSE:BRK.A, BRK.B), have plunged 23%.

The Class A shares closed Friday at $116,650 each, down from their 52-week high of $151,650 (the Class B shares represent 1/30th of the Class A shares).

However, Money Morning’s Horacio Marquez says Berkshire’s share price is merely a reflection of the slowdown in the US economy. And with shares now at bargain prices, it’s a perfect opportunity to take a stake in one of the best investment portfolios on the planet…

Verizon Helped by Wireless Sales; Kraft Produces Profit; Raytheon Teams with NASA; Ryanair Crashes and Burns; Dow Dives 240 points; Oil Rallies on Political Tension; White House Lowers Growth Estimate; Amgen Profit Slides.

To see how improving net margin separates winning companies from those merely surviving, there’s no better place to look than food industry.

This industry is getting squeezed, as spiraling commodities prices increase input costs. And few firms are managing to pass those extra costs onto cash-strapped consumers.

One company is bucking that trend, says Lynn Carpenter in Investor’s Daily Edge. Spam-maker Hormel (NYSE:HRL) reported a 17% improvement on its net profits from a year ago…

Consumer spending, which accounts for more than 70% of the economy, will be seriously threatened in the months ahead, as prices continue to rise, wages plateau, and government stimulus checks wear thin.