My take on the market is simple. US has much consumer demand pent up from 3 years of holding off many purchases. Manufacturing is set to be a big gainer. On the down side, Europe is in the final months of absorbing its debt load and eating its losses. This is the only thing holding us back right now IMO. I bought back in last month on the last uptick, and have little cash left to invest. I'm thinking if the market hits 10,500 or less again, to borrow 10-20k off my LOC. My leverage would be small compared to my total debts, ($40,000) and the cost of funds is only 3.25% with little chance of it going much higher in the near future. GE seems poised to go much higher, shedding much of the financial losses it was exposed to and focusing on the Manufacturing side. Any thoughts?
Mfg is set to go way up. They are waiting to make it more profitable. Idiot legislators do not understand ECON 101. For any one to go into business, they must be able to see, or thing they can see a profit in excess of 20%. You can get that with CIM stock and not have to do any thing. Ru;les and regulations keep an entrepeneur from investing in mfg. Idiot gov't get out of their way. Politicians think money belongs to them.
I have to agree with you on GE. I don't borrow but I often convert my dividend income to GE, PFE, VZ, T as these are safe havens and yield between 4 and 6%. All of my money is IRA and thuse protected from dividend taxes at the moment. Perhaps options would be your better choice if the Dow does actually go that low. They are cheaper, your losses are limited and they have great leverage. Just a thought. I believe that BB&T is a safe haven here as well although I sold mine back in the mid twenties and have not reentered. In fact I put the proceeds into GE