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It is difficult for many smalltime investors to determine whether any good, safe investment opportunities exist for them at the moment. As long as we're in a recession, though, and not a depression, those investors should take a more-careful-than-ever look at the water and then make their leap if it looks clear. That means doing the research. Looking back over the past six months at the stocks they're interested in and noting their movements.
Stocks to consider should be ones that have shown growth since mid-summer or even further back. Gold and silver, after years of being stalled, are on the move again, gold particularly. After shooting for the moon earlier, gold has a new power boost behind it, as India, Russia, and China have all recently expressed a sizable interest in acquiring big amounts.
A specific stock to buy now is Tyson Foods. While Americans are struggling with employment issues and mortgage payments, they've cut back substantially on red-meat consumption. Tyson chicken is filling the breach. This is a good stock to buy now and plan to hold on to for a while.
This era of the uncertain market has caused utilities to appear even more attractive as an investment than they normally look to conservative investors. Going into winter, electric providers are a very good bet as a stock to buy. Oil remains unassailable.
Looking at the overall economic slump and the stock market's tendency to freefall on mere rumors, there's no doubt it's advisable to play it safe. Large companies with a fairly consistent track record look good and Canadian Pacific (CP) matches that description. It's an especially attractive stock to buy right now, because there's been a big uptick in rail shipments over the past year, plus CP's earnings rose 14% in the 2009's third quarter.
Nobody can really predict with any degree of accuracy if the worst of the storm is over or if we're just enjoying a temporary lull right now. In recent years, bio-medical stocks have been red-hot, but FDA inspectors have made unsavory discoveries recently that have cast a shadow over the industry.
So the stocks to buy now must not only show steady growth over the past six to twelve months, but also have a logical reason, given the times, behind that growth. Better yet? A logical reason for continued growth. |