There is a lot of money sitting on the sidelines waiting for the right time to get back into the stock market. Maybe that time will be after the Dow Jones Industrial Average tests 7000, or even 6000. Maybe it will be after quarterly reports start turning positive. I'm sure many people will not do anything until the housing market turns around. Then there are those that have sworn off the stock market or at least individual stocks entirely.
These and a multitude of other issues may be keeping you from investing for now and no one could blame you, but if it is your intention to get back in when the coast is clear then you should be making some preparations by putting together your watch list.
Here are some of the stocks on my watch list. I usually have about 20 stocks that I am interested in. Some of them I own already and I am interested in acquiring more. Some have appeared in my Chasing Value column, and some or all might appear there again.
Annaly Capital Management (NYSE: NLY) is one the stocks mentioned in Fortune Magazines "Ten Promising Stocks for 2009" and is currently paying almost a 15% yield at Fridays closing price of $14.92. The company borrows money at short term rates and only invests in long-term Federally backed mortgages. They have avoided subprime loans and derivatives entirely.
Intuitive Surgical (NASDAQ: ISRG) is one of my top holdings and favorite companies. I have owned it for years and only selling some shares at $192. I recently started building a new position in a new portfolio in the past few months and I am interested in buying more. It closed at 134.38 on Friday.
Sometimes you can't tell what a market is really doing until it's all over. But I can tell you that it really was different in this bear market. Deflation reared its head at the end. Hard to imagine given rising food, tuition, gas, heating and healthcare costs. I'll give you a story to show the difference. Back in late 2001, a pretty severe bear market, and right after the World Trade Center attack, I recommended Tiffany's (TIF). It seemed outrageously wrong–bear market, fear... Even some of my most loyal readers skipped that one. A couple later wrote to say they felt like kicking themselves. That bear market would run on till spring of 2003. But while the indexes were falling, Tiffany went from $21 in October 2001 to $35 by July 2002. The indexes were still in bear markets. By last[More...]
The big three begged for money in DC today (Thursday) and it did not have much of an affect on stocks until the last hour of trading. The market was back its old tricks and sold off during the last 60 minutes of trading, turning a basically flat day into a triple-digit ...
In this episode, we discuss stocks Warren Buffett would love. He didn?t ask us, but we found five great companies that fit his criteria.
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