It's May 2009 and we are seeing some positive territory with stocks lately. Sure the Bank reports of the 19 biggest banks are in and the reports were well...not so good and we're still waiting on the government's suggestions I'm really seeing a period of "stability". According to Citigroup they will be seaking 10 Billion in capital not through government investment (which for all of you's that's keeping count is 45%) but private investments. What's even more exciting is that there are potential suitors!!! The stock has been trading at the $2.00-$3.90 range the past month or so and I think finally (once the bad bank assets get bought up) we're going to see stability with the banks. Sure I would love to see Citigroup sell some assets like its Traveler's insurance brand (Hey Warren you listening?) but for now I like the idea of private investment in CitiGroup. Yes, I am basing this whole positive empathy on the fact that the big banks (Citi, Bank of America, Wells Fargo) are looking up as far as performance lately. I would like to see some more mergers coming about but for now I like the performances by Mr. Geithner and Mr. Pandit. So what is going to dig us out of this recession hole? Well, obviously we're going to see it with housing starts, I think once housing gets going again for consecutive months we're going to see some bullish sentiment with stocks. Also, commercial properties are going to have to lead us out because with commercial property comes jobs. I do believe that unemployment will peak at oh about 12% until we see it come down but that was already priced into the market in February. So what do we buy?
Specifically:
Apple- I know I love this stock so much that I always recommend but think about it. It's done so well during the recession and with out Steve at the helm. Think of what it will done once we're good again.
Citi- A bit speculative but seriously this stock will hit $10 by summertime I can believe that for sure.
Amazon- Tech/retail mix is one of the few companies with a notable CEO that doesn't flinch at a bad economy.
First Solar- With growing economy we're going to have to get energy somewhere and First Solar has the monopoly when it comes to alternative energy.
Toyota- Going back to alternative energy this company produces affordable cars that don't guzzle gas. As well as unaffordable cars that do not guzzle gas.
Wells Fargo- The new Warren Buffett, Jamie Dixon is CEO/gambler of the year in my book and the stock price shows.
my speculative play of the year? Saks Fifth Avenue- They're real estate values them much higher than $5/share plus it's got the reputation to sustain its legs.
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