Sometimes we get so focused on the news, the technicals and the charts, that we fail to see the ape dancing around in the room.
Hello!? Blue chips are cheap.
If you have a long term perspective and don’t mind collecting dividends while you wait, you should be buying into this fear-ridden market. There are times to ignore and throw away what you think you know and just be a simple-minded, emotionless and lucid buyer of the leading companies in America. This is one of those times.
I’m continuing to scale in here, and so should you. Just a little while ago, I bought:
Pfizer Inc. [[PFE]] , @ $17.41 (13:15 ET)
Citigroup Inc. [[C]] , @ $13.98 (13:16 ET)
General Electric Company [[GE]] , @ $20.45 (13:16 ET)
The Home Depot, Inc. [[HD]] , @ $20.67 (13:18 ET)
Alcoa Inc. [[AA]] , @ $12.12 (13:18 ET)
Relative to “riskless” assets like treasuries, blue chips are a bargain.
In other words, risk is on sale. Risk is cheap. It’s premium has already been realized since October 2007.Comments »