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Steve's note: My friend Chris Weber has an incredible story... He's made so much money from his investments that he's never had a "real" job before. It's no wonder... I've never seen him be wrong on a major market call. I think reading his recent thoughts on the stock market are worth your time today...
What It Would Take for Me to Be a Major Buyer of StocksBy
Thursday, November 6, 2008
As much as I want to believe otherwise, I don't think the worst is over for global stock markets.
I think this will be so even though we will see bargains in asset prices during the next few years. At some point, for instance, the world's stock markets will be great bargains. Yet most people will be too scared to buy into them, having been fooled too many times before.
Further Reading:
Market NotesANNALY CAPITAL: THIS WEEK'S "WOW" CHART
This week's "WOW" chart comes courtesy of Annaly Capital...
You can read Tuesday's essay for the full story on this stock. But the basic idea is this: Annaly borrows money at short-term rates and invests that money in government-guaranteed investments. It uses leverage to juice up its returns. Annaly's corporate structure allows it to pass most of its profits on to shareholders in the form of double-digit dividends. And its safe strategy is a far cry from the stupid things that went on at Bear Stearns and Countrywide Financial. But when the world freaks out like it did in October, it doesn't care for any loan or investment. That's why the market clobbered nearly every financial stock by at least 50% in 2008. Annaly, however, has held its lows... and is trading where it was one year ago. One of the most bullish signs a stock can display is when it holds steady in the face of a terrible market and terrible news. Well, Annaly has spent the past year getting the kitchen sink, the refrigerator, and the oven thrown at it. It has shrugged it all off. An investor can only be impressed. |
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