Free Investing Tips – Time to Invest in Blue Chip Stocks?
March 13, 2009 by Gregg · Print This Article
Free Investing Tips: Gregg Andreski
Okay, read carefully. This free investing tip could produce large gains. The falling market coupled with the flimsy 
economy has uncovered a unique opportunity. I am about to provide you with a significant investment tip. With this information you’ll be the envy of your peers.
Right now is an amazing time to set aside some money for what could be a lucrative investment in…
Blue chips — all of them! That’s right. Blue chip stocks are currently undervalued and are at lows that haven’t been seen since the Dolphins made Hootie and the Blowfish cry in 1996. Although it’s extremely difficult for investors to predict when the market will bottom out, there’s no disguising the fact that these blue chip stocks are on sale. Not just a Nordstrom 1/2 yearly sale or a Bed Bath & Beyond 20% off coupon, but a frightening Circuit City-esque clearance.
Out of the 500 companies in the S&P, 193 have an earnings-based price to earnings ratio of 10 or lower for the past year. Only 36 S&P 500 companies had that distinction in 2007. But you don’t even need to look at the P/E ratios. Simply conduct some basic stock research either via your favorite dartboard or better yet, your computer. Just listen to the names; it reads like a who’s who list of super companies; Ebay, General Electric, MasterCard, Dell 3M, Oracle, Microsoft, Southwest Airlines, Cisco, and Disney.
This free investing tip doesn’t stop with just those companies. As of March 9, Apple was trading at $83 per share compared to $189 last may. Sony is currently $19 per share compared to last June when it sold for over $51. Just check out the blue chips and pick your favorite.
Now, I’m not saying that these stocks can’t continue to stumble and post losses, but, when was the last time you were able buy a new $35k BMW for $14k on the lot? A $5k Hawaiian vacation for $2k? Or, a $700k house for $300k? Well, um, see California for that last one.
Even President Obama is noticing the unique opportunity. Following the day where the Dow Jones fell almost 300 points, he stated, “What you’re now seeing is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal, if you’ve got a long-term perspective on it.” U-S-A! U-S-A!
So again, this free investing tip could prove to be a lucrative investment move for your portfolio. Blue chips are drastically discounted at rarely seen prices. Put on your flannel shirt, turn up the grunge music and invest like it was 1996 — at your own risk of course.
For more free investing tips read Gregg’s latest article on Short Selling Stocks
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Hey Gregg, what do you think about Master Card? Is it a good buy, or do you think it will go down some more?
I’m worried about all the credit card debt. How will Master Card money if people start defaulting?
Charles
Charles, I haven’t been following Master Card real close, but I know they are cutting costs (like most financial services) as revenue slows. I’m sure they will weather the storm…latest news from Reuters is them acquiring a large stake in Orbiscom which is a payment processing system. Their fundamentals still look solide but doubtful we see Summer of 2007 type numbers from them for several years. I would just rate them as a “hold” at this time.