Disclaimer

The purpose of this blog is only to serve as a forum for expressing my opinions related to investing, and for others to comment, if they choose. Anyone who uses any such opinions or comments, does so at their own risk, as everyone's situation is unique, and what might be appropriate for one person, might not be for another.

Comment on Housing

There does seem to be a slowdown underway in the current housing boom. I suspect the slowdown is a precursor for worse things ahead for housing, and since housing is such a big part of our economy, would have a direct impact on our economy.

Generally speaking, such a scenario is not good for the stock market, but I stick with my approach of buying stocks in companies which are resistant to economic cycles, pay good dividends and have a history of raising them annually, the only caveat being to make sure one maintains a good reserve of cash to be able to add to such positions if bargains present themselves. Further, all my recommended stocks are financially strong, SLE being the least so, so I would monitor that one most closely.

JNJ update

I am removing JNJ from my recommended list, because of the litigious environment surrounding drug stocks. Besides the general risks, there are specific risks regarding stents. Further, JNJ recently showed they didn't do due dilligence with the GDT acquisition, as GDT has some litigious risk with their products. For now, I will leave ABT on my recommended list, but it is a candidate for removal, just for the genral risk of lawsuits in the industry.

Recommended stocks

1. WWY
2. KMB
3. PG
4. JNJ
5. SLE
6. ABT
7. MAT
8. PEP

All these stocks pay dividends, with a record of increasing them yearly. Further, these stocks have products which are immune to normal business cycles. SLE is a special situation, in that it is in the process of reorganizing. MAT, too, is a special situation, which after a reorganization, appears headed in the right direction, with more upside potential, than downside risk.

As with all stock investments, it is best to begin with a modest position, then add or subtract from the position, as the situation presents itself.

There is no special order to the list.