Dow 12000, Eli's coming, and waiting for Godot

MIDDLE CLASS, if you are still there, since you have recently hinted at investing here are some thoughts.

Although I love American Funds management style they are cumbersome to manage in downturns. I would lean toward mutual fund companies which are no load and have only a few funds to choose from. Some that come to mind: Appleseed (1 fund), CGM (3 available), Amana (3), Fairholme (1 avail. under 25K). Obviously less funds are easier for management to concentrate on. Again, big companies like Fidelity and Vanguard, although no load, are cumbersome to manage. Mutual funds should only be looked at for their 10+ year performance for those under 40 years of age. You are buy and holders. Regarding mutual funds, you might consider a free 14 day trial with Morningstar Premium to see if you like it. I USE NO SUCH SERVICES.

I love big tobacco stocks (like Altria, practically a fund unto itself). Big dividends due to stigma. Investing is not ethics. Therefor I find large oil tanker stocks to be interesting, e.g. FRO, SFL. They are a necessary evil with big dividends (but extremely volatile obviously). I like the ever evil HAL to get into and out of occasionally. I rue selling MA at $65/share. The poisonous DD I sold too early. For safety I like prices of $15-$30/share with P/Es of 9-15 and dividends of 3%+. Analysts will throw all kinds of other criteria at you, but my formula is simple. All formulas get burned sometime. Unfortunately, this strategy will leave out mid-cap and small-cap (entrepreneurial) stocks which can have gigantic gains more often. They also go to zero value more often. I currently love Russian and Latin American ETFs. I prefer their smaller expenses over relative mutual funds.

Be aware that this rally can not hit full throttle minus reemployment. On the other hand, it's good to see the Dow gaining traction after being spanked by the S&P and Nasdaq so far in the recovery. Don't forget that the Nasdaq is already higher than at the height of the buying frenzy pre-recession (2007).

One final word: YOUARETOOLATE (Investing was timely at Dow 8500).

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A Few Anti-Establishment Rants

1) I can't stop laughing. Did some of you folks who held the worthless "old" GM stock actually buy the "new" GM stock for the going price? Youz deserve what youz get. I know you are kidding and I can't stop laughing. I would have taken a shot at under $20 a share. Come on guys, I'd rather eat "Mickey D's" three times a day seven days a week. Who cares what form suicide comes in? Put all of the rest of your money in .05% money markets! Hey der ya go, safety net for the next Detroit bankruptcy party. Diversification complete. "Big D" won't even pay a dividend! A thousand year old growth company, hah. Go with Altria please. If you must take a bath, even Ford is a better choice. Same excellent 0% dividend!
2) This time circus rhymes with stalemate. That's o.k., Mr. Market loves stalemates.

Congress has no clue. I would just as soon see them in powdered wigs, sitting around saying harrumph and zzzz. At least it would be genuine, overt circus.

A middle class revolution should discourage over taxation and transaction fees. I don't like taxation without representation, which is what exists currently.
"...tax man's taken all I've got...all I've got's this sunny afternoon...", Kinks 

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"The I'm Apolitical But... Blues"

Warren Buffett ain't a Dem just 'cause he's a bleeding liberal. GW Bush made super sure that history shows better market returns during Democratic presidencies since 1901. Look it up per presidential term average return, per year average, I DON'T CARE WHAT CRITERIA.
His negative return did kick HHH's butt though. Look it all up 'rons! In all fairness,in the same family GHB has one of the best ever S&P returns. Yeah I know Reagan blah blah. (Obama ?stands? to have the best ever return.) Look at the historical (overall) invested middle-class America. Who America? We The People however, have no clue. Go "Teabaggers". It's even worse yet, since Republicans have 60 years of poopy returns since 1901 to 48 years of Dem presidency. So we have been overbalanced negative. Warren has a clue I fear.

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After The "Fat Finger Trade" Debacle

A day after Procter & Gamble lost 40% and Accenture 100% in minutes (human error, ha ha) let me remind you: Day Trading Is Now Our Major Investment Platform. There are a couple of things going on, all precision aimed to keep the middle class out of the investment process. Oh well, you are too late already, by about 2000 Dow points. At least get out of the money market!

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A Few Obvious Reactions

Institutional Buyers Of Bank And Thrift Stocks - The Gold Book















Get out of all of those bank stocks that were bought for dividend (as soon as you can break even on them). They slashed your payouts to nil. I think GE will be fine (very long term) with a dividend increase. Don't press your profit on DD (TAKE IT NOW!) Russia will be hot for awhile yet. I always like defensive tobacco (with an advancing high-yield dividend). People will have their cigs.

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Warren and Me

I'm still a guy who thinks five grand is a lot of money. I can't carry much more than that to the hereafter in my pockets. I think Warren Buffett feels the same way. He don't need a billion dollar house, even though he can.

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It's Not a Secret

Buy dividend producers with good P.E.s and payout ratios.

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