They're calling it a volatile market. That's like referring to World War II as "that skirmish over in Europe." Come on people, I don't even do the investing game professionally, but I can sure read the writing on the wall. I've been telling you since around Christmas time of 2006 that we are setting up for a massive worldwide economic realignment. I can't predict exactly when the bottom will fall out, but it's coming. Oh yes, it's coming.

You probably don't want my advice but I'll give it to you anyway. Reduce your debt load immediately and cut your risk ventures to the bone. Precious metals might provide some protection, but I myself would remain cautious at this time. Although, generally speaking, precious metals provide relative safe haven in times when the stock markets show weakness, a strengthening dollar tends to dilute that, and the current international economic churning should actually brace up the dollar, aided by an upward swing in manufacturing output and a slight decline in the gap between import and export totals. Gold production and recovery efforts are running in high gear right now, and that increased output is crimping gold's usual hedge function from the supply side.

Continue reading Volatile Markets: Precious metals are the safest place to be

Volatile Markets: Precious metals are the safest place to be originally appeared on BloggingStocks on Thu, 16 Aug 2007 19:24:00 EST. Please see our terms for use of feeds.

Ninety days have passed since I posted Scary market -- any safe stocks? and Still scary market -- more SAFE HAVENS.

When I wrote these original posts the market was on shaky ground with higher fuel prices, interest rate uncertainty, housing market questions, common summer market doldrums, and concerns about upcoming earnings reports, consumer spending, and inflation. Well, we made it through this valley of worry with fuel prices declining, interest rates stabilizing, employment and consumer confidence robust, and reported earnings primarily to the upside. The stock market has been riding this wave upward with the DJIA hitting news highs.

I revisited the stock suggestions I made in these posts after thirty days and decided to continue to track them. I believe in some level of accountability if one is blabbing (or blogging) about a subject, and especially since I have been writing for the Blogging Stocks site. All of the stocks have moved up in the last sixty days, but since my original posts in July, the share prices of six have moved up and two have gone down. I have not changed my mind about any of these companies or their stocks during this period.

We considered buying some more United Parcel Service, Inc. (NYSE:UPS) and did not; we added to our position in the Southern Company (NYSE:SO) instead, which has done well, and Huaneng Power International, Inc. (NYSE:HNP) which has done even better; see: GOOG is OK but HNP could be better!

They are listed in the order I mentioned them in my earlier posts.

Berkshire Hathaway Inc. (NYSE:BRK.B) closed Tuesday at $3,560 up from $2,995.

Washington Mutual, Inc. (NYSE:WM) closed Tuesday at $43.00 down from $45.50.

Continue reading Market not so scary any more ... or is it?

Market not so scary any more ... or is it? originally appeared on BloggingStocks on Wed, 15 Nov 2006 15:50:00 EST. Please see our terms for use of feeds.