By all reasonable measures, we are already in a recession, says Shah Gilani. Deflation has become today’s number one threat. But massive government rescues mean another bout of inflation looms on the horizon. Shah says investors should look to short vulnerable stocks in 2009. But in 12-18 months, they should be prepared for a “generational opportunity” to make a fortune.
Money Map Report editor Horacio Marquez says Apple Inc. (Nasdaq: AAPL) is a bargain at today’s prices. The company continues to grow and diversify, and will keep gaining market share for its products. However, a consumption slowdown and tough competition means caution is essential when building up a position.
US retailer Target Corp. (NYSE:TGT) is considering offloading $20 billion in real estate holdings. This will enable the company to focus on its core strategic operations, says Andrew Snyder. And that makes it easier for investors to analyse the business. Andrew expects Target’s stock to jump if this sale is given the go ahead.
Andrew Snyder says this is not the time to be buying bonds. Yields on Treasury bonds are paltry, and over the next five years will pale in comparison to the rewards on offer in stock markets. Andrew says this is a great time to buy blue chips at penny stock prices.
Warren Buffett is shopping for railroad stocks again. The ‘Oracle of Omaha’ increased his stake in Burlington Northern (NYSE:BNI) to almost 20% last month. Fuel efficiency and road congestion are two key factors supporting a bullish outlook for the railroad industry, says Jason Simpkins.
John Pugsley says there are some great opportunities coming out of this chaotic market. Wild, irrational swings are distracting from the simple rules of value investing. John has three simple criteria for finding the best long-term profit opportunities out there today.
Choppy markets have sent dividend yields to “unbelievably high” levels, says Jim Nelson. This makes today a great time to start income investing. Jim says Royal Dutch Shell (NYSE:RDS:A/RDS.B) and BP (NYSE:BP) are two cash-rich companies with consistent dividend payments and “absurdly” high yields right now.
The recession is underway. The US economy shrank by 0.3% y-o-y in the third quarter. Adam Lass says politicians need to accept the truth and allow the economy to correct itself. Only then will stock markets genuinely recover. When they do, some investors will make a fortune. But to survive until then, Adam says it is essential to buy put options on weak companies.
Tuesday’s mega-rally will have many investors itching to get back into the stock market. But Eric Roseman says chasing a short-term bounce could be a big mistake. Similar up-crashes during the Great Depression were followed by prolonged downturns. But Eric says this could be a good time to “nibble” at some quality blue chips or non-Treasury bonds.