On Tuesday (January 4, 2010), I wrote a journal entry entitled "3 Stocks for the Next Decade".
Since putting together this small list, the three stocks combined, GE (+8.11%), C (+9.28%) and BAC (+12.4%), are up an average of 9.93% in just a couple of days.
These three stocks are part of 11 stocks on our Under Loved, and Under Appreciated Stock List, which is up an average of 15.73% since November 24, 2009.
With almost every investment guru promoting tech, and bashing financials, we felt very comfortable with taking a contrarian approach. I believe in the old saying, "when everyone is lining up their deck chairs on the sunny side of the boat, it may be wise to go to the other-side of the ship because the sun will eventually come around to you."
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Today, the market is resisting some selling pressure on renewed interest in the financial sector. Jeremy Siegel of the Wharton School of Business recently said “their evidence is building that the world economy is headed for a substantial recovery from the worst financial crisis since the Great Depression.”
In addition to Siegel's comments, the head of the IMF said the group is likely to increase its forecast for global growth later this month vs. its October forecast of 3.1% global growth in 2010.
This morning, Initial jobless claims rose less than expected suggesting that U.S. job trends are improving.
Retailers such as Macy’s, Target, and Sears increased their profit outlooks for for the year. Bed Bath & Beyond posting earnings that beat estimates, and the stock was up about +8.4%.
The weakness in the markets are in technology stocks which is putting pressure on the Nasdaq.
