George Gorski

It's Too Late To Sell Stocks, Just Wait

I believe Friday Oct. 10, 2008 was the Stock Market bottom, only thing going on are institutional investors beating each other up. There was a lot of intersector activity and large buyers entering and exiting the market, example, TSX at 10:00 am Friday.
Can't hide behind sound names like GE, they are getting hammered too. I am going for the gusto, if the economy is going down the tubes, might as well go for high multiples with a 5-10 year hold window. I am trading laterally within a sector with producer names that are sound and pay a large dividend or are a small / medium cap with a large resource, such as oil, gas, gold, coal, iron, zinc, copper, platinum, nickel and uranium. The multiples from the 52 week highs to the lows of this week are very compelling (5 to 20 ratios). If the economy is going to move laterally over the next few years, there will be a lot of M & A activity, if the market is going to crash (tho the Fed are trying hard to ensure it dont happen), these resource stocks will survive. In 5 years I will be either thilthy rich or thilthy poor. Hopefully, naked selling and short selling will be outlawed. Maybe a non deductable 1/4% tax per share value will re-establish traditional long term holds.

George