pennystocks2008

Is This a Permanent or Temporary Loss of Capital?

Interesting chart. I never realized that JNJ was lagging the S&P 500 by such a large margin.

8 Dow Stocks Likely To Outperform

You stock market genius, find out first whether it is Proctor & Gamble or Procter & Gamble. Why should we take you seriously?

By the way, what really matters is the dividend growth rate, esp. given the current inflationary environment. Of course, not a single word from you. And that guy wrote a book about stock-picking!

Three Stocks To Be Held To Infinity and Beyond

There's a rub in it. Don't forget that we had an incredible bull market from 1982 to 2000. That's why your three stocks soared the way they did. You could mention other examples as well. If you bought $10.000 worth of Philip Morris stock in 1980 and reinvested all dividends, you ended up a millionaire with a huge pile of Altria, Philip Morris International and Kraft stocks. Just don't expect that kind of extraordinary returns in the future.

Hedge the Recession with Staples and Sin Stocks

Three objections:

1. Tobacco: You can't assume that the tobacco companies will continue to grow their earnings like they did in the past. Regulatory issues used to play a minor role then. That has changed dramatically, with banning of public smoking in a lot of Western countries. Growth is only possible in emerging countries with much less affluent customers.

Insurance: Oh yes, AIG (should you opt for the largest insurance company) makes a great hedge against recession these days (down 40 % since last summer and still falling).

Go global: Invest in European stocks and this will only get you so far. For you are investing in a very strong euro. But what happens if the euro weakens against the dollar (which it eventually will)? Then the stock price has to increase more quickly than the value of the euro deteriorates. Doesn't sound like a safe hedge for a portfolio to me.