pennystocks2008

Dividend Paying Stocks: Don't Discount Them Just Yet

@ sharksm: Some lucky morons invested in no dividend paying Berkshire Hathaway 20 years ago ...

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.