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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