Epiphany Investing

Searching Out the Optimal Portfolio of “Revelation” Stocks

Market Paralysis as the World Opens up the Spigot

Posted on | September 29, 2008 Time: 3:00 pm |

After reading the Paulson Plan details early on Sunday, I feared for a weak Monday. The actual results are much worse, especially more pervasive globally, than I expeccted. Europe is extremely weak across the board, and they appear to be retracing the U.S. market’s steps from two weeks ago. I certainly hope this is not the case, and the massive expansions of  global currency swaps and central bank liquidity have certainly given a boost, at least in the terms of capital.

But will it matter? This morning’s Wachovia (WB) deal is not confidence-inducing. I find myself curiously unable to step in and buy some of the weak sectors, even though many opened up down 6% or more this morning.

After doing some research on Duke Energy’s (DUK) Crescent Resources segment (a real estate JV), I see that less than $150m in assets even remains after earlier reported losses. I was considering adding a 3% stake to the portfolio while suggesting that most investors give up on capital gains for the rest of the year and simply go hunting for stable, high dividends. The Secular Trends portfolio will follow this advice, which seems to be the only sensible option.

Picking up 1600 shares of DUK at $17.84, and crossing my proverbial fingers on this critical day for the global stock markets. If no confidence appears by the end of the trading day, it does not speak well for the near future.

Ryan Barnes

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Category: Broad Markets
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