How to position yourself right now. I am preparing to buy into market after a Medium Sized correction.
PS - commercial real estate should be the source of some liquidity crunches in the future.
How to position yourself right now. I am preparing to buy into market after a Medium Sized correction.
PS - commercial real estate should be the source of some liquidity crunches in the future.
Just 2 Criteria really:
(1) an ability to increase prices rather easily (even when product demand is flat and capacity is not fully utilized) without fear of significant loss of either market share or unit volume
(2) an ability to accommodate large dollar volume increases in business (often produced more by inflation than by real growth) with only minor additional investment of capital.”
I think of companies in my portfolio (in order) that will withstand that criteria like:
AXP - As spending increases am-ex automatically collects more income. Possibility of less spending overall. However like all companies wages will be increasing. This company worries me least with regards to inflation.
JPM - Banks in general should benefit from the FED interest rate increases; as interest rates on customer accounts will increase much slower than lending rates.
AAPL - Has pricing power and committed customers who will not switch because of a little more. Raw materials for chips etc. are accelerating faster than finished products are increasing however.
GOOG - Advertising will keep being needed. Web services alternatives better than google will be hard to find. YouTube is an undervalued asset that doesn't need to advertise.
FHLC, OGN - Healthcare should be somewhat easier to transfer through others like insurance and medicare.
FDX - Still a key to the boom in delivering parcels for the rising
internet sales. Price increase have been made and dont seem to be too
difficult thus far.
BABA - Pass through costs should not really be e
LGIH - Demand for housing not decreasing any time soon. But expect headwinds from rising interest rates and the FED.
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