Policymakers and regulators are still groping for the necessary steps and actions to try to avert a complete meltdown.
Last week, I had stated that the stock market was headed for a crash and had the potential to repeat what happened in 1987 with a Black Monday crash.
The mitigating factor for all that appears to be emerging from our goverment. And that is, a coordinated effort to put together a comprehensive strategy which is global in scope. While there is much to be done, and still a tremendous amount of risk out there, I think it is time to start looking at buying stocks again.
This morning, I’m going to start positions again in [[SSO]] , [[DDM]] , and [[QLD]] to get broad exposure on the long side. I’m also going to buying the blue chips that are paying dividends, which would include some defensive names as well. Though I’m seeing opportunity here, I’m only using 1/4 of my equity capital allocation at this point.
Names include:
General Electric Company [[GE]]
The Procter & Gamble Company The Procter & Gamble Company [[PG]]
Kimberly-Clark Corporation [[KMB]]
Pfizer Inc. [[PFE]]
Intel Corporation [[INTC]]
Microsoft Corporation [[MSFT]]
Altria Group, Inc. [[MO]]
U.S. Bancorp [[USB]]
[[MCD]]
and Wal-Mart Stores, Inc. [[WMT]] to name a handful.
Keep in mind that there is still risk that we could go down, but a rally is overdue here and I think you can make some money at least in the short run.
For many of you, the name of the game is damage control and portfolio repair, so this may be an opportunity for you to do just that.
Finally, keep the stops fairly tight on the 2x ETFs and be ready to take profits should the rally fail this week.
Have a good day.
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