I go for mine, I got to shine...Now throw you hands up in the sky! This is the third track off of Kanye West's "Graduation" album featuring T. Pain. Now this is the jam, but I am not sure what life Kanye was referring too. It's interesting I find myself not writing as much whenever there is a lot of turmoil in the market. This usually also reflects turmoil in the world, which then reflects itself through the market. Let's see, we have major financial companies, Bank of America, Merrill Lynch, Citigroup, and Wachovia Bank all getting hammered by the weakness in the credit markets and the mainly through the bad investments that were made. Add to that the mortgage crisis in the US which has led to homeowners everywhere defaulting on their homes. All the companies in these areas, which were once living the "Good Life" are singing the blues and laying people off. Then there is that pesky thing called energy...it currently sits at levels that are unthinkable. Oil is reaching levels of roughly 90 dollars a barrel and predicted to continue to rise. Now maybe I am too young to really know what I'm talking about but there has been the "R" word thrown out by some analysts and that would be RECESSION and from what I am seeing in the markets I don't think that some of the whispers are too far off.
I am no mathematician but poor financial markets + bad consumer debt + rising foreclosures + declining property values + layoffs = something is wrong (possibly RECESSION). I am not comfortable with the volatility in the market because as companies are beating earnings or being upgraded they go up and then immediately the market brings them right back down due to all the negative news. Now Warren Buffet wouldn't care because he's in it for the long haul (and he's rich), so for the rest of us that were out there speculating its time to take gains were it makes sense and build on our recession proof stocks...like dividend stocks. I like buying stocks that make products that we continue to buy even when times get tough and I still like technology. You'll appreciate the following updates:
Advent Software (ADVS) - reported positive earnings today; (technology)
Radisys (RSYS) - upgraded by Cantor Fitzgerald, price target raised from 11 to 18 (technology)
Emcore - coverage initated with BUY by Roth Capital (technology)
Burlington Northern (BNI) - reported positive earning (transportation)
They have a few things in common being technology plays and one defensive plays. I think this will be the direction to go for awhile.
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