Here is a very specific idea for you as far as an investment this year. Historically the very best time to buy stocks is in the fall of mid presidential term/congressional election years. This year is one of those. On or about October 1st, look to find the most undervalued stocks of the Dow 30 ( pick ) 5 of them. Make sure none of them is losing money (GM) is eliminated for example. Divide the amount of money you have for stocks into 1/5’s in terms of dollars and buy those 5 stocks. Hold them until April 1st of the next year, then sell all of them.
This has been the strongest seasonal stock play that exists since the 50’s. The actual play is to hold them for 2 years, but there is a strong tendency for big declines mid year,in years ending in 7, so 2007 is one of those.
There may be other plays out there stock wise that would be better, but this is an approach that historically has worked very well. I will be doing this trade myself. Assuming I am still active in this forum, I will be more than willing to tell you what these stocks are at that time. However, I may not be. There is much written on the web about this tendency so research it.
You would be wise IMO to exit now, as a decline is upon us which will setup this seasonal buy trade this fall. I exited all stocks about 30 days ago, due to the weakness in bonds, and seasonal tendency for a drop at this time.
I am not trying to be a know it all as any trader that has been at it as long as I have has been crunched a few times. However, this is a very conservative value oriented investment approach that has consistently outperformed the market as a whole.
As far as your comments on inflation, I think I tend to agree. I do not know what the real rate is, but it does seem like it is more than what is being reported. My favorite phrase is the CPI ex food and energy! That basically says, if we take out the things that are causing inflation, then there is not a big inflation problem.
That is like saying if you kept the basketballs of the court, the opposing team would have a hard time scoring a basket!
