DOW Jones UP 400 points

DOW Closes Up More than 400 points

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DOW Closes Up 400+ Points

After some really horrific days on the New York stock exchange the DOW made a correction.

To review the entire debacle of the stock market occurred when the debt ceiling debate went public. I and many of the writers on the hubpages have expressed concerns that Congress is not held to the same insider trading standards as the people they represent. We were all concerned about the credit down grade. What has happened when our credit was down graded from AAA to AA? There has been a flurry of international investment in the USA. I agree. If I have the liquidity I would be buying in this USA market now as well. We there is blood on the street everyone agrees it is time to buy and so it has happened. We can only hope this philosophy will continue.



Stocks I Would Recommend

I like to recommend a few stock to you as I think they are good bets but this is only my opinion so take it as such. First and foremost since it is an election year I suggest everyone buy the volatility index because the only consistency in the financial markets is the volatility.

I like;

General Dynamics

Lockheed Martin

ASA

GS

Apple

Microsoft

IBM

RDS.A

XOM

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Comments 10 comments

Victoria Lynn profile image

Victoria Lynn 5 years ago from Arkansas, USA

Interesting, JT. I was surprised but very glad to hear that the Dow is up 400 points! I am curious as to how you came to your recommendations...I would like to learn more about investing. Thanks!


JT Walters profile image

JT Walters 5 years ago from Florida Author

Hi Victoria Lynn,

Always nice to hear from you.

Oldest daughters are apprentices to their Mother's always. Quite literally, I have studied for the series 3, 6, 65 9, & 10. Finacials are in my blood.

Let me begin by telling you my Mother worked in the finacial industry for 27 years. She traded Gold during the Hunt brothers gold rally in 1979 in which she made a million dollars in cash and then we made a living trading comodities out of our home for the next decade or so. I had to learn to read the exchange symbols as a little kid and get up in the middle of the night for when the markets opened up over seas.

I also have extensive chart reading ablities that I have cultivated over time.

The DOW will take another dip and if anything you should trade the volitality index or the VIX but limit how much you can lose. Over the next election cycle money will be moving in and out of the market like crazy because this election is going to be close. Republicans liquidate out of the market when Denmocrats are in office and vice versa. I don't trade like that.

I prefer to look at historical prices. For instances GD or General Dnamics was trading around $50 a share. This is a great price as this stock pays a dividend. And right now you can pick up dividend producing stocks at really great prices. For instance GE is trading at about $15 a share. This is an awesome price for a conglomerate. I believe GE is being traded below its market value which I believe is about $29 a share and it is still paying a dividend. The same is true with Lockheed Martin. LMT pays a great dividend and it is trading low now as well. You can buy directly at www.lockheedmartin.com to avoid having to pay brokerage fees.

ASA is a hedge against inflation. Although I believe the Gold Bubble to be bursting it will not go straight down. Gold historically moves back down slowly to normal prices and there is still a high demand for gold in Asia.

GS has just be hit with a law suit I believe but is well worth its weight in gold.

I like technology especially during wars. There is a saying that we never progress unles it is through war so to own technoogy during a war is to buy the next generation of progress. So apple for innovation even though Jobs is not well and Microsoft because it is very stable.

IBM for the very same reasons along with dividends.

Royal Dutch Shell (RDS.A) which is an American Depository Receipt and to simplify; ADR(s) are guaranteed.

XOM because it is reasonably priced and I doubt we have seen the end of turmoil in Middle Eastern Countries especially with the news out of Afganistan and Iraq and Egypt.

I always buy at really reasonable prices and never spend money I wouldn't set on fire. So if you don't have it to lose then don't spend it. But to get in when things are down and way down is to make a nice profit later. But I would only invest in stocks I knew were dividend bearing. Money is too tight to speculate and not get anything back from your investment.

When I had the money back in the day before my Mother got Cancer I would take $50 and I would pick the cheapest penny stock I could find in an IPO. Don't do this because IPO(s) normally fail and it takes years to learn the market but I bought one called goldsprings. I bought at .007 and I think I bought 5,000 shares and sold it for $.92 cents a share. I had to pay commissions on the way in and out of the stock but it was worth it. My investment was $35 and I made close to $4000 dollars. But I never invested more than $50 unless it is a dividend earning stock and I am was always involved in dividend reinvestment programs.

Let me give you a link to start your chart analysis. It is www.bigcharts.com. I would start by watching MSNBC and picking a stock. Don't invest. Pick one, check the chart and then pick a price point ot get in. I like the interactive charts. There was a time corning was trading for $4 a share. That paid well also. Look at as much history as you can and see if you can figure out were a good price is. I usually complete trend analysis on my charts. Then track it for six months. You will either be angry with yourself for not investiing or angry at yourself for picking the wrong stock.

A few rules for you my friend because I want you to keep your wealth.

1- Never invest more than you can lose.

2- Only in dividend earning stocks.

3-Never buy on Margin because that is the real reason behind all the home foreclosures crisis.

4-Never short the market. It will be hard enough to figure out how to make money going long so don't short the market because you can lose your shirt quick.

5-There is only a compeling reaosn to buy a stock but never a compelling reason to sell. I like to double my profit and gete out.

6-Mind your time horizon. If you are young you have a greater risk tolerance than if you are more mature and moving towards retirement. So if you are over 50 buy bonds.

7-Don't be a day trader which is short for don't watch your stocks everyday. It can become and obsession much like writing for Hupages. Usually one looks to get it this time of year because people are normally saving for the holidays around now and things are much cheaper and then selling a few years down he road in the month of February.

One last stock tip I like Cisco as well because it carries our articles all over the world It hasn't done well lately but at one time it ws trading for $120 a share and did pay a nice dividend. I can't recommend it until it pays a dividend but I like that stock as well.

Thanks for you interest. I hope I have answered your questions specifically enough.

All My Best and Thanks for Reading and Commenting,

JT


Victoria Lynn profile image

Victoria Lynn 5 years ago from Arkansas, USA

Wow, you are very thorough! That was a hub in itself, and way above my head. haha. I have a lot to learn. Thank you for all that information!


Jt Walters 5 years ago

Hi Victoria Lynn,

I like you and you expressed an interest so I tried to be thorough. I hope you got the general ideal and will follow the links.

Well I am not liscensed but any information you might need i would be happy to provide as long as you understand I am not liscensed.

All My Best.

JT


Harvey Stelman profile image

Harvey Stelman 5 years ago from Illinois

JT, And what has happened since that day? H


JT Walters profile image

JT Walters 5 years ago from Florida Author

Hi Harvey Stelman,

I would say if you bought gold and the CBOE you would be in good shape because I said the market would be voliatile. And that there are better buying opportunities now in the stock market than ever. Only cmpelling reasons to buy and not sell.

And to be very clear aboutr all of this I also said, "No day trading." and Harvey you are giving me a day trading perspective. Look at the whole picture not just the day.

Thanks for reaidng, providing feedback and commenting. I think in a long time horizon which is the only model in which I would invest at this time at all and I was clear about that with Victoria Lynn you will see a profit margin buying now and holding. But I am also a person that remembers the DOW at a few thousand points and never would have imagined it to the 11,000 is at now. If you bought in the 1980(s) and held you would have no complints right now. The stock market is a long time horizon investment. I also remember the DOW back donw in the 7,000 range not too many years ago and I bought into that dip as well and who could complain about an 11,000 DOW when we have had a 7,000 DOW in the last decade?

Look at risk tolerance, time horizon and no day trading. Day traders are going to suffer immensely unless they are in the volitaility index or the CBOE and then it will be all profit.

JT


Harvey Stelman profile image

Harvey Stelman 5 years ago from Illinois

JT, I have always prefered Silver, the price lets you buy more.

I won't but or sell stocks now, this is the time for the big boys. H


jt Walters 5 years ago

It is true when Gold went up to a whopping $800 an ounce in the 1979 that silver followed and it was a good trade back them but I like to stick to more industrial metals now days.

I think witht he stable stocks like GE and GD and LMT when the market is down they are sound investments as well as RDS.A or XOM. I like trading commodities as well but you most of your purchases have to go on Margin and you can lose your shirt quick. While stocks may not have the immeidate gradifications of Commodities they are a more stable currency. For what are stocks but companies with startegic commodity investments?

I think it is all how you look at it. Currecny trading right now must be the bomb in trades. I would saty away from ETF(s) and go in for volatility. I think that is the best safest trade if there is such a thing.

Thanks for commenting.

All My Best,

JT


NiaLee profile image

NiaLee 5 years ago from BIG APPLE

Jt I thank you for this hub. I have been interested in the stock market but never really got the basic education to enter it. I planned on buying bonfds for my kids and myself as soon as possible because a friend of mine does that, she buys bonds for her kids' presents. I want to start a business and also learn how to navigate the stock market. Your hub and the comment for Victoria taught me a lot. I have been watching MSNBC late at night and early in the morning, they have a lot of shows about starting a business too. Thanks again and pleasure to read you. Love and peace.


Jt Walters 5 years ago

I am so glad I wrote something of interest to you. Remember start very slow and carefully. YOu may wish to look at zero coupon strips as they are not taxable and taxes will probably be going up soon.

As always it is wonderful to hear from you. I am on break from Hubpage publishing right now but I have a lot in the works.

Follow the charts and graphs as well specifically look at year to date graphs. Complete trend analysis on each stock.

Always good to here from you my friend. You always brighten my day.

Love and peace to you as well.

PS

Diversify since your children are young you can accpet some risk in their portfoilos (sp?). I like 30% cash, 30 % bonds and 30 % dividence producing stocks and the extra 10% in risky assests. Sometimes thos e10% become un risky and then you liquidate and raise you cash value. Cash should always be put in money market accounts.

I'm not a broker so follow your own broker's advice. I just grew up around this so I knwo it pretty well.

Much love and peace to you and yours.

JT

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