Back to business, what to do when :
1/ you don't believe in a rocket economical recovery
2/ You think risk is high in the stock market...
3/ you don't want to trade daily...
I have 2 solutions for you....
1/ You take profit & go back to cash... Of course, you know what you have & won't participate in any improvement in the stock market... Also you will be protected for any downside... & be ready to use your dry powder for the near future...
2/ Or you still want to stay invested like me.... Then, you better have a more defensive approach and invest in ETF or stock with High Yields...
Some ideas: I own personally some MLP (pipelines companies) such as LINE, OKS, ETP... They provide me with a Div. of +/-6-7%.
In the 5-6% range, you also have: PFF S&P Preferred share, T (AT&T), EXC (Excelon).
I also recently added some financial stocks as I believe that they will start to increase again their dividend... USB &JPM, or a less known one ORIT (3,3% div.!!! nic etechnical rebound since some days/weeks).
I also like the Brazilian market and therefore CPL (CPFL Energia) with a +/-8% div.!!!
IMHO, I think that those shares & ETF will weather better the uncertain times ahead...
Ah, last but not least, you could play a 3rd game... the currencies.. if you believe that, for example, the Euro will continue its fall (EUO) or The Yen will weaken (YCS)...
Ok, these were some Investing thoughts live from Seoul.
Feel free to send me a message or leave me a comments...
Stay safe & wish you already a prosperous 2011 year...
Joel Gans
