Anonymous
Anonymous asked in Business & FinanceInvesting · 1 decade ago

What STOCKS do you think will rebound after the economic mess? ?

Do you think stocks will soar with obamas stimilus plan?

Your thoughts.

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  • Anonymous
    1 decade ago
    Favorite Answer

    I own a boatload of stocks in various industries. Something like common stock in about 400 different publically traded companies. (No, that's not a misprint, four hundred.)

    What shocked me the most was when I got my statements in for the 4th quarter of 2008 and I saw so many utility companies had also dropped.

    My educated guess here is that a large number of mutual fund shareholders decided to cash-out in the last quarter of 2008. In order to pay them in cash, the mutual fund managers had to sell stocks - all kinds of stocks, including blue chip utilities.

    Does anyone really think that we as a nation are going to be using that much less electricity? Will people still need natural gas to heat their homes? Or, how about clean drinking water? These are all necessities in our society.

    I think the utility companies offer a pretty good return for the risk in the short run. The vast majority of them are paying dividend yields that are better than what you can get in a money market account (even the uninsured MM accounts.) Add to this that they usually have plans to increase their dividends in the years to come, and this should result in their stocks going up, and I think that utilities are a no brainer investment at this juncture.

    Another good investment for the long term would be the diversified healtcare and consumer staples stocks. People will always find ways to get cuts and scrapes, and regretably, more servious injuries. So, Johnson & Johnson should do well, even in a recession. Also, Proctor and Gamble has so many popular brands of consumer goods that they should be doing well for many years to come. And, I just don't see anyone switching to Chinese made foods or toothpastes with all of the bad press coming out of China on their poor quality assurance programs.

  • 1 decade ago

    "Its not so much what will soar with the plan, personally I don't think the plan will be the cure all. However, after this crisis many of the blue chip companies will be fine. General Electric, Citi Group, Exxon Mobile etc. These companies are strong, large, and some of them even survived the great depression many years ago."

    Is that guy kidding himself?!?

    Exxon Mobil will have a great time as fuel prices will once again rise at the start of summer. However their will be some added pressure as the new administration focuses on cleaner alternative fuels.

    Citigroup is going no where fast and the fact that this person said that they are a strong large companies scares me. Citigroup has very weak balance sheets, their market capitalization is less than the money that was injected into the company by the bailout. In fact Citigroup is looking into breaking into two divisions and this person thinks that this is a strong company? Mind you Size means nothing!

    General Electric had a pretty poor quarter. They are exposed to the financials as well which is an industry where they do not belong. Honestly if you own GE now, hold onto it, but don't go looking to buy shares at this point in time, let the company post a positive earnings quarter before you jump in.

    If your looking for a couple companies to get into right now, look at MasterCard and Visa, both will have mediocre results for the past quarter but as the economy picks up, they will be the first to recover.

    I also like Morgan Stanley and Northern Trust, great financial companies that will be very strong as the economy recovers.

    I also like the shipping industry, specifically DryShips and Diana Shipping. These companies have been hurt as the cost of shipping has decreased and so have their bottom lines, however both are fundamentally sound and have great management.

    I hope this has helped and good luck!

    Source(s): www.thechartistsview.blogspot.com
  • 1 decade ago

    I'm not sure about the strength of financial companies such as C or GE (a big portion of its business is finance driven) as they have to deal with large debt and government payback but I would keep investing in companies for the long term future - namely alternative energy.

    A company like FSLR (First Solar) has huge potential growth numbers which are currently being cut back due to the depression. Even in this market they are growing though and once the economy gets on track they should be projected to do very well.

  • 1 decade ago

    Citigroup, GM, Goldman Sachs, Berkshire hathaway, Bank of America, Chase, Whole Foods, Alcoa, Arcelor Mittal, RBS, Barclays

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  • Anonymous
    1 decade ago

    Its not so much what will soar with the plan, personally I don't think the plan will be the cure all. However, after this crisis many of the blue chip companies will be fine. General Electric, Citi Group, Exxon Mobile etc. These companies are strong, large, and some of them even survived the great depression many years ago.

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