Looking at long term charts of virtually any mentionable stock on the market will most likely yield the same result, a glaringly obvious BUY. There are other reasons to get your money out of hard currency, such as the impending unprecedented inflation that will follow the Bush and Obama administration reckless handling of our economy and outsourcing to the Federal Reserve. The Federal Reserve, shrouded in secrecy, is a private organization which needn’t reveal its inner workings or meetings to the public, yet is in charge of the creation of currency and the interest rates.
Watch Out for These
Some stocks need to be watched, however, that they correspond to corporations that are safe from new legislation. Some of these may include arms manufacturers, as the future of the right to bear arms is possibly under threat under Obama’s administration and new Justice. Another potential victim is the health care industry, which include pharmaceutical companies. Add on to this military contractors, as so far the track record in the administration is we are already paying too much for heavy machinery (take for example the reduction of F-22 orders from Lockheed Martin).
Look Into These
Some strong stocks to look into for real returns over the long run are stable bank stocks, or banks that cannot go under without cataclysmic consequences to the economy (we know the US Gov’t wont let another Lehman Brothers fail). Among these are Citigroup (NYSE:C) and Bank of America (NYSE:BAC). A good example of an already partially recovered bank stock is Wells Fargo (NYSE:WFC). As you can see Wells Fargo underwent a reclaimation of value much earlier than C and BAC. My personal opinion of the two is that Citigroup will undergo the largest percent increase of the three. 10 year charts of these banks are shown below:
Don’t Like Bank Stocks?
If you’re looking for a safer investment than bank stocks, then you might try chemical companies such as Dow Chemical (NYSE:DOW) or Huntsman (NYSE:HUN). In the last six months Dow has risen from less than $7 to today’s price of $21.10. Huntsman has risen in the same period from the low 2 dollar range to $7. This is a 200% increase for Dow and 250% increase for Huntsman. They still have potential, though, as Dow was trading in the 40’s in 2007 and Huntsman in the mid 20’s in the same period. Both pay dividends and are profitable with a small P/E ratio.
If you hate stocks in general then I suggest putting money into cheapened real estate, precious metals, or even oil futures. Keep in mind all contents in this entry are speculative and no responsibility of loss is mine.