Street Speculator

The stock market has become extremely predictable, which in my opinion does not bode well for investors. The current trend seems to go somewhat like this:

Monday + 100 points; Tuesday -80 points; Wednesday +220 points; Thursday -190 points; Friday +205 points.

The stock market has been displaying this trend for the past month. It becomes predictable which makes it difficult to make money for THE LONG TERM. I suggest you take your profits as soon as you can, conserve at least 75% of your gains, then plunge the other 25% back into the market.

CASH is the key. You should accumulate cash on a large scale. Start saving more than you put into your employer sponsored investment plans (401k, 403b, etc…). Since banks have basically “stopped lending” you need to have a large amount of capital reserves on hand as there may be no credit available in the event of an emergency. As long as the price of the U.S. dollar remains high as compared to the currency of other countries, you should be OK. The value of your dollars would remain high and stable.

When you do invest, consider companies who have a large amount of cash and little to no debt. Study their balance sheets as you would your personal financial statement. With cash, you have more options than if you were bloated with a lot of debt. Debt always keeps someone in control of your every move.

StreetSpeculators “Cash” Company Index:

Texas Instruments (Symbol: TXN):  $1.65 billion in cash (No Debt)

KBR Inc. (Symbol: KBR): $1.96 billion in cash (No Debt; former Halliburton subsidiary)

Apple (Symbol: AAPL): $20.77 billion in cash (No Debt)

eBay Inc. (Symbol: EBAY): $4.05 billion in cash (No Debt)

Microsoft (Symbol: MSFT): $21.17 billion in cash (No Debt)

Google Inc. (Symbol: GOOG): $19.61 billion in cash (No Debt)

These are a few choice companies with the optimum balance sheet. There are more and StreetSpeculators will provide names as our research continues.

Important: A good balance sheet provides the greatest potential of future growth. Take your profits immediately and do not hold for the long term. Last, do not invest in DINOSAURS.

DINOSAUR- any publicly traded company not started by a college dropout or anyone under the age of 27 yrs.