Big boring is good

AGA7d

Minyanville 08/23

BTIG’s Mike O’Rourke isn't a card-carrying member of the double-dip camp, believing that the economic recovery will regain its momentum by year-end. However, the strategist tells us that he believes large-caps are still the smarter play for investors at this time.

“From my perspective, large-cap equities are the cheapest area of the market and the most attractive,” says O’Rourke. “These large companies are flush with cash and trading at low multiples. That’s the most conservative way to make the equity bet."

Economic Times 08/24
"Michael O'Rourke, chief market strategist at BTIG LLC in New York, wrote that weekly equity volumes the past couple weeks have been 24 per cent below the weekly averages for all of 2010. The S&P 500 also broke through a support level of 1,170 after holding up earlier in the day. The level had formed a floor for the index of late and represents the 50 per cent retracement of the most recent rally from July 1 to August 9.

Gains by utilities, healthcare and other defensive sectors stemmed declines. The S&P 500 utilities sector gained 0.6 per cent, while the healthcare group added 0.3 per cent. Cyclical sectors led the way down, including industrial shares, which are more economically sensitive. Caterpillar Inc gave up 2.9 per cent at $66.84. The Nasdaq fared worse than the other two indexes, extending losses late in the day as technology shares slipped. Lingering concerns about the stalling economic recovery weighed on tech. "

Today, most of the green stocks in DOW are defensive ones - T, KO, MO, PG, WMT etc, with WMT rising the most. The big red ones are more related to the recovery, like CAT, AA etc.

AGA7d

A bit more copy/paste:

• The low level of interest rates remains the single most compelling bullish argument for stocks -- and there are many examples of a disconnect between stocks, interest rates and other metrics/markets of risk.
  
• For the first time since 1962, the yield on the Dow Jones Industrial Average exceeds that of bond yields.
  
• Risk premiums (the difference between the earnings yield of the S&P index and the 10-year U.S. note) is at the highest level since the beginning of the modern era's bull market that began in the early 1980s.
  
• Nearly four-fifths of the companies contained in the S&P 500 index possess earnings yields that are greater than bond yields. And many have (growing) dividend yields that are similar to their own bond yields.
  
• In a Friday conference call, JPMorgan's Tom Lee observed that the performance between bonds and stocks over the past 10 years has never been as wide in any decade in history. Whenever stocks have a negative 10-year gap in performance relative to fixed income, the average yearly return in the following decade is approximately 13%.
  

hhli3

源济

tortose

superxy

看来买high-divident stock是正途，推荐几个？

QWE

大盘走熊，什么股都会跟着跌，我的策略是买债券，小钱买SDS一类反指，更小钱买PUT

丛林法则

大盘走熊，什么股都会跟着跌，我的策略是买债券，小钱买SDS一类反指，更小钱买PUT
QWE 发表于 2010-8-24 03:08

厉害