freestate80 (54.12)

Did not realize it had been so long

December 03, 2008 – Comments (0) | RELATED TICKERS: AMD , GE , EAD

I did not realize that it had been this long since I had posted.  It has certainly been a year.  I have learned alot this years.  A new view and level of patience that will do me well in the year ahead.

 I have put on a couple of trades lately that I do feel good about.   I put on Ford (F) at $1.50.  I have a 90% return on this.  I am looking at holding for a while longer.  This is meant to raise some extra money to put somewhere else.  I also put a trade on Advance Micro Device (AMD) at $2. Although this company has some issues, I do feel that this should be trading at a higher price.  This is another trade meant to raise more cash.

As I take these trades off along with some otheres not mention, I will move into dividend paying stocks.  Imagine if GE gets back in the 12 or 13 range again.  This stock has a $1.36 a share dividend for a year.  Imagine getting a quality company like that with a 10% yield.  Where can you get that with your money right now.  The market may take awhile to come back but this is just one example of a stock of a quality company with a solid dividend that you can get currently.  Some others I am looking at or already own is Dow Chemical (DOW) , duPont (DD), Phillip Morris International (PM), Altera Group (MO), Catepillar (CAT), Pfizer (PFE)  among others.

Also I have purchased some bond ETFs.  I looked at some of the yields and decided I had to purchased.  I purchased Legg Mason Western Asset World (SBW) which currently has around a 16% yield.   I also purchased Evergreen Income Advantage (EAD) which is yielding an incredible  25+% .  Both trade at at least a 20% discount to net asset value which I believe to be low due to the turmoil in the credit market.  I am sure there are others that could provide value you as well.  I do believe that the bond market will come back or has to come back before the stock market can make any meaningful advance.

Many opportunities exist in this market so look for things that catch your eye and do the homework.  In a year or two, you will glad that you did.