Tag Archives: Occidental Petroleum
In this month’s visit, I’ll show you how to safeguard your wealth during this tricky period of increasingly tight money, while positioning yourself for the wave of prosperity I expect once the Bernanke Fed reverses course and starts lowering interest rates (probably in late 2006 or early 2007). Bonds and cash are part of the plan, for sure. However, I’ve also pinpointed two stocks for you with the best potential to score double-digit gains this year, regardless of how long it takes the Fed to do an about-face.
Stocks have put on a delightful rebound since the October 13 lows. I hope you’ve enjoyed the elevator ride — I know I have. Now we’re about to move into Stage #2 of the year-end rally.
Even after the shocks of Hurricanes Katrina and Rita wear off and the holiday spirit takes over, investors will still have to grapple with the Federal Reserve’s increasingly hardheaded monetary policy. Until the rate hikes stop, it behooves us to play the game with extra care. For long-term investors like us, that means two things. First, we want to take advantage of the market’s occasional swoons to fill our shopping car with stocks that have been knocked down too far. One group that has been dented lately (despite excellent earnings prospects) is the oils. In this month’s visit, I’ve got a pair of oil stocks you can lock away for potential returns of 50%–80% over the next three or four years.
Might as well get used to it, because this is the pattern we’re likely to see repeated several more times over the next six to 12 months. Stocks slid today as investor anxiety mounted over the latest Bush administration miscue (the hastily quashed Miers nomination).
O ye of little faith! When our first signal to buy bonds was tripped October 14, I heard from subscribers who feared that the door might shut before they got a chance to scamper in. Sure enough, the latest wave of inflation jitters pushed the 10-year Treasury yield up through 4.5% again today. We closed at 4.51% for a second, clear-cut buy signal.