You should be cost leveraging your way into a position in this market

Though I still insist this is a great market for those who have their finger on the beat of trading options and buying themselves protection in this volatile market, I still want to light a fire under all those who heeded my advice during much of the past year to pull their money out of the market and hide it in moneymarkets and cds — now is the time to start cost leveraging yourr way into key positions.

Pick some solid investments — roll up those sleeves and start crunching the numbers to see if you’re getting in low to a solid company that’s likely to be soaring in the future — or whether you need to avoid a company that may once have been good, but whose prospects and balance sheet aren’t worthy of your time or money.

There’s lots of news out there these days, including word that commercial real estate loans could generate losses of $100 billion by the end of next year at over 900 small and midsize banks in the U.S. if the economy gets worse; to news that BlackRock has been granted a coveted second-round interview by the Treasury to possibly become of the few money managers allowed to buy toxic assets from U.S. banks on the taxpayers’ dime; to news that smaller companies are having a tough time getting credit from banks.

Just keep your eye on the ball.

Same names on my due diligence list, including Wells Fargo, Walmart and McDonald’s. New to my list is Anadarko Petroleum and GE.

Just remember my usual disclaimer: Don’t base any of your investment decisions on anything you read here — do your own due diligence, or at least enough research to pick the right professional to handle it for you.


One Response

  1. So where did you and Pete escape to last weekend?

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