Monday, November 26, 2012

What stocks should I buy now?

Here in this market where we are all looking to find the right stocks to make money off of from capital gains to dividend payments it's becoming more and more confusing about which companies we can trust. Looking at the troubles with companies like HPQ Hewlett Packard which spent so much money acquiring autonomy only to later reveal there were accounting issues at the time of purchase. Who can we trust with our money at this point?

It's hard to really know because it's becoming more and more difficult to trust the number set in front of you and make an informed decision. I mean if your information is not correct than research really means nothing. Then we have giants in the industry such as INTC Intel corp. which is clearly fading off from where it has been in the past. They just might not be a giant among men any longer. Some of us still have faith in them to find a way to succeed but so many people would rather just jump off ship.

I personally find myself trading off of faith more now than ever and that's because the numbers can't tell me everything anymore. The forward p/e ratios I see no longer feel correct anymore. Estimates have let me down too many times, technical analysis is becoming more and more a fools game in my opinion. I should stop there and pull back my comment about technical analysis but that is just my personal opinion on the stocks that I have been watching. I have watched as solid companies earned each quarter and hardly moved. I have watched great companies losing stock price with great earnings.

I love the stock market, I love it so much I will probably always invest but sometimes it gets so confusing and nothing makes sense. They say I'm a gambler but I'm not the only one. I still believe you can pull great dividend payments out of this market if you find the right companies. I'm starting to get away from clearance shopping. That means I'm shying away from stocks that appear to be a great deal because no matter how well they earn they just sometimes don't want to go up.

Disclosure: I'm long Intel and HPQ because I believe in them but there probably are better opportunities out there so invest with extreme caution.

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