NOVEMBER 20, 2008 (Dow 7552, down 445) - The Second Great Dpression is on the table. The government can't let the large financial institutioins fail; must make sure the annuities and life insurance are there for beneficiaries; stabilize housing prices through tax credits for buying new homes; use TARP money to buy toxic mortgage securities from the banks; must back Fannie and Freddie bonds with an explicit guarantee to lower mortgage interest rates; modify existing mortgages so they are affordable; set up tax credits for hiring people to stabilize unemployment; provide debtor in possession (DIP) financing for the auto companies and guarantee their warranties; start a trillion dollar infrastructure program to put people to work and push the European Central Bank (ECB) and the Bank of China (BOC) to lower rates to 2.00% to reignite growth in their economies. THese actions may remove systemic risk and cause some of the money on the sidelines to buy riskier assets. Still like the quality high yielders (see recent recommendations). The SEC chairman is in the pocket of the short sellers.
MO shareholders got 1 share of Philip Morris Intl (PM) - MO is the consistent value play with a 5.2% dividend that will go higher - PM is the international growth play - believe MO will begin large stock buybacks & cut costs - PM will have 10-12% growth going forward - pays a 3.6% dividend & will also be buying back its shares - will keep both in the Trust
raw costs are under control - has safe & solid earnings during a recession - am buying it for the Trust - think there will be another giant buyback
20.94
-5.68%
08/27/08
taking share - goes higher - 6.5% dividend yield
20.62
-7.12%
10/01/08
is a steal with a 6.6% dividend yield now
20.55
-7.43%
10/10/08
is the kind of stock to buy now after the big drop in the market - buy it if the market gaps down Monday - the stock is now at unbelievable levels - am buying it for the Trust
17.16
-22.70%
10/24/08
bought more for the Trust - bountiful dividend - triple buy
19.22
-13.42%
10/27/08
stocks that have a high dividend yield and little overseas exposure are working - co spun off its international operations
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