Forget the
Black Sheep find the Ugly Preemies
Hot tips are humbug. Forecasts are
fool’s gold. It’s the time of the year when everyone on Wall Street and in the
financial media will offer their predictions for the New Year.
Cue the Symbol .the Soothsayer
routine. The hand clutching the forehead. . Gasp! I see a terrible financial
crisis arising in the east. Doom, doom!
Ba Ba Baaaa.
Many years ago Scott Wallace at
the Univ. of Utah offered the See-Sucker Theory of expert forecasts. “No matter
how much evidence exists that seers do not exist, suckers will pay for the existence
of seers.” Count me out. I’m with Casey Stengel: “Never make predictions
especially about the future.”
Economists are very good at predicting
the past. But this doesn’t mean we have to enter the New Year completely bid.
We know for example, which stocks are reasonable value. We know which assed
classes are currently out of fashion, and therefore have the potential to come
back into fashion. As 20l2 gives way to 2013 we have some idea of what’s being
overlooked and ignored or to put it more graphically while we can’t predict next
year’s sheep, black or white, we do at least know today’s ugly preemies-that
might be something
So what’s wooly, ugly, and baaa?
Banks are making good money from interest rates at the moment, and can
be expected to make more if the economy really picks up in 2013
Utility stocks and oil these are
the only industries on the stock market that global money managers don’t want
to own. They are both underweight. Maybe it’s because utilities are too boring
and oil is too unexciting. Make of it what you will.
D
Dominion Recourses is a utility in SE United States which own the
largest gas, oil, coal deposits in the United States, That I suggest buying
Pm (Philip Morris International) is another stock I suggest. This giant market
is deeply unpopular but is big on profits and dividends. The average money
manager would rather suck a lemon than invest in foreign companies
Thrill Dryer who owns a small
condo in a Salt Lake City is thinking she will buy a much bigger one. They’re given away.
Once, banks gave a free toaster when you took out a mortgage. Best Buy will
give you a free condo when you buy a flat screen TV.
No one wants residential estate,
but next year there are indeed, signs that it is already time to double-dip as
the next wave of foreclosures, bankruptcy’s hits the marked. Next year may be
as bad as this one, or even worse. Prices in many parts of the country have
come down a long way from the peak. And is anyone going to argue that real
estate is the ugliest lamb on the ranch
DR. KARL WALLACE DDS
To read more Karl Wallace stories go to:
Karlwallaceblog.blogspot.com
