Don't trust this stock market tomorrow. Don't trust it unless it's down big. Sounds funny, but the one thing we don't want to see tomorrow is the market starting higher than where it went out. That might be the kiss of death, as there are so many people who want out that any lift might be met with selling. You should join them if you have banks or techs to sell. Don't like them. I mean it, sell them. It's not too late. Especially if we get any sort of rally, intra-day or otherwise. Second, don't trust any assurances that we get from any government that everything is going to be OK. Those have been true non-starters.
What do you trust? I like to look at a couple of stocks that have led us out of all of the big declines and tailspins of the last few years. I am going to be looking at the highest of high-growth stocks, where the money tends to go first, and that means seeing if or when Apple ($AAPL) or Google ($GOOG) or Amazon ($AMZN) turns around.
And then, finally, I think you have to consider companies that just reported good numbers that can win in a lower-oil environment, because oil is coming down hard. The best fit there? Unilever ($UN). Nice yield, too. We just bought some for the trust, and I wish we had bought more. Who would have ever thought you could say that about a stock on a down-500-point day?
Or how about Kraft ($KFT)? We just heard good things, including a split-up, and the stock finished down on the day.
I am also thinking that with oil down, you might even be able to start a position in Kimberly-Clark ($KMB) or Pepsi ($PEP), both of which called out raw costs as big impediments to profits.
I have no illusions. This would be an easier piece to pen at Dow 9000. I don't think we are going there, although I am sure there are now plenty of people who think we will. I just want to take this one a day at a time for the moment. It's just that tough out there
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