Trading is not a game of exacts. Perfectionists need not apply. Markets are made up of many irration...
Strike Up the Band
10/16/2002 12:00 am EST
Richard Band is best known for his focus on combining long-term value investing with contrary opinion. And, indeed, in the current market environment, no position can be more "contrary" than an all-out buy signal. But in a special alert to his readers last week, Band said, "A monster rally is about to break loose on Wall Street." In the latest issue of his Profitable Investing newsletter, Band highlights three stocks for current purchase.
"It's time to be fully invested in stocks, up to your personal limit. A bunch of my most reliable indicators have flashed a powerful buy signal. Even as the media headlines scream that the market is getting worse and worse, the charts are whispering that the downtrend has burned itself out.
“Investors should focus on companies with projected earnings growth of 8% to 15% a year. One timely example is Morgan Stanley (
“I would also note that dividend-paying stocks tend to be less risky than those that pay nothing. As a rule, companies that ‘share the wealth’ with their stockholders, and increase their dividend payouts year after year, can afford to do so because they generate plenty of excess cash, over and above the needs of their business. Case in point: Lloyds (
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