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Author: WendyBG Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 465391  
Subject: Shooting fish in a barrel? Date: 10/10/2008 4:37 PM
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http://online.wsj.com/article/SB122365485651323325.html


*Wall Street Journal
* ROI
* OCTOBER 10, 2008, 4:26 P.M. ET

Bear market? Try a bucking bronco.
Even safe stocks and gold are selling cheap right now. Grit your teeth and buy.

*
By BRETT ARENDS

...great, top-quality shares are being thrown on the bonfire along with everything else.

Johnson & Johnson's collapsed about 25% in a few weeks. It's down to a price to earnings ratio of 11, yielding about 3.2%. The crash leaves British Petroleum yielding more than 8%.

It's the same with Vodafone, the global cellular operator. Kraft's down to levels below than those Warren Buffett paid last winter. Yield: 4.1%. Novartis is down too. The yield's over 3%. Ditto Nestle. Japan's Nippon Telegraph & Telephone is going for a mere 10 times forecast earnings....

...those stretching a little more can look at Procter & Gamble, Microsoft, Exxon, IBM, Coca-Cola, PepsiCo, Merck, Pfizer, Wal-Mart, AT&T… the list goes on. Blue chips. Cash machines. Top quality companies that won't need to be dependent on their (bankrupt) bankers in the years ahead.

For anyone with spare cash, this is like shooting fish in a barrel.

Closed-end funds are simply being given away.

Japan has fallen about a fifth in two days....Emerging markets...

One that's worth considering right now: gold stocks.

They've collapsed along with everything else – even though the price of their product is surging. ... gold stocks right now are selling at record lows compared to bullion.

The ratio is less than half its historic average. It's a third lower than its previous low....
[end quote]

Worth considering any and all of these.

I'm also considering selling VGENX, which has collapsed, and buying individual dividend-yielding energy stocks in January.

Wendy
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