Right now the real money has been made in investing in dying stocks (banks) and watching them skyrocket, or in investing in small cap stocks. We in the U.S. have over 75% of he world's great quality franchise stocks.
Blue Chip stock buyers, watching the large caps, should take particular interest in the laggards in the S & P 100 and S &P 500, and look at the stocks that trade at lower than market price/earnings multiples.
Real brand names that we all buy all the time are bargains: JNJ, MSFT, WMT (under $51.00), Proctor and Gamble (PG), MCD, etc.
We believe that U.S. growth will, over time, accelerate, the rise in low quality stocks will resume, and Blue Chip growth will resume, albeit at a slower pace. However, if growth disappoints we'll see a shift from the high fliers to the "sleep at night" stocks that work better with normal growth, which we anticipate in 2010.
Review our core and speculative portfolios both online, and at www.stockcharts.com where all our holdings are listed, and continue to invest a portion of your investments in the quality names; they will pay off.
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Of real interest, the International Monetary Fund (IMF) said Monday " traders are probably using the dollar to fund "carry trades which upward pressure to the Euro and in investing in Emerging Markets.
Economist Roubini, who forecast the financial crisis in 2006, says that investors are "unknowingly" making the "mother of carry trades"
Definition of a carry trade: http://en.wikipedia.org/wiki/Carry_(investment)
With investors able to borrow at near zero interest rates some traders are concerned that the investing idiots will continue to borrow for carry trades, with the USD suffering. In a carry trade investors borrow in countries with low interest rates to invest in higher yielding assets.
