Galt Stock

Independent Investment Research for IRA’s and 401K’s

Nov. 20, 2008

“If you find yourself in a hole, quit digging!” The best thing we can do in this market is stop. For short term investors just sell on rallies when you get to any gain. For long term investors sit tight. Some of the smartest guys I know think we could see the DOW drop to 6600. That is scary for short-term positions, unless you know when to buy the inverse funds and go against the market. For long-term investors, do not sell now, write down your list of blue chip stocks that you would love to have in your portfolio at a discounted price. Have this list ready, know the price that represents the value to you and pull the trigger when you get it. In the next few days or weeks you may get to add to your portfolio at fantastic prices.

A good strategy you can use is buy ½ your position now, and ½ at the predetermined price you have set.  This places you in the stock at today’s low price and possibly an average down for the other half.  There is no guarantee that prices will drop further!  We may have a Christmas rally, or we may have an Easter rally.  I cannot tell you when, but these low prices will not last forever.  Those people sitting out the market now, will look back a year from now and wonder why they did not buy XYZ Company when it was so undervalued.

Fear is griping retail investors as they rush to treasuries. We saw last week that an interest premium was being paid on long notes. Today the three-month treasury pays .03%. There have to be better returns than three one hundreds of one percent!  As my old boss used to say “Let your conscience govern your actions”.

If it was easy, anybody could do it.

WARNING:     The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here. Do your own research, it’s your money. If you lose it, it’s your responsibility, not ours or your grandmothers! The editor may or may not have a position in any securities discussed. The editor may have held a position in a security earlier, or in the future.