Monday, December 31, 2007
Dow started at about 12½ & ended about 700 (or .7) points higher. As said last time, the second half saw a bumpy ride. Tomorrow I'll try to get in a review of the year
new highs 24
new lows 223
On the new lows list look for: Citigroup (C), Washington Mutual (WM), Macy's (M), Ann Taylor (ANN), etc. Banking & retail remains very weak.
The Dow had a great first half, but after reaching new highs early in the second half of 2007 flattened. For much of the last 6 months it has been kicking around the mid 13s, going nowhere. It probably will continue this pattern (at best) into 2008.
Friday, December 28, 2007
For the month, Dow is trying to eak out a gain. It's slightly under water. Mon, the last day, will determine the outcome in what will be the worst quarter in a few years. Have a good weekend.
I'm adding graphics. On the right is market data on DIA (it emulates the Dow Jones Industrials) & stocks I follow, statistics supplied by SeekingAlpha. In addition, on the street I was given a copy of the Wall Street Journal. To check their website, click on their name.
Thursday, December 27, 2007
The early buzz on retail sales is pretty ugly. They're talking about the worst season in 5 years. Just looking at ads in the papers, the stores appear to be pressing hard for sales gains spelling lower margins on sales. Housing remains in a slump & the mortgage mess continues. Citigroup (C) is widely expected to cut their dividend to keep more cash on the balance sheet. This month the Dow is struggling to record a gain. Today it's touch & go.
Banks & REITs were weak among the many losses. The MLP index pulled back 2 points to 300 after a big run up in the last few days. Volume continues low. Tax loss selling for individuals is over, one good thing in this market.
Wednesday, December 26, 2007
Monday, December 24, 2007
I sense retailers are pressing hard for sales. Good for shoppers, not for them. They are giving many discounts which will probably continue. Sales should be up with margins down making for not so good results. Housing remains in the dumps and credit crunch is not over. If this proves to be an up week, enjoy. We all need them.
The only major news item is Merrill Lynch (MER) is getting an investment of over $6B from Singapore's Temasek Holdings & U.S. money manager Davis Selected Advisers, to help it through it's financial crisis. The news came out last week, MER is down fractionally.
The rest of the week should be quiet.
Sunday, December 23, 2007
Friday, December 21, 2007
Next week should be good for the markets, time for the year end rally. Can't wait to see!
Dow is up 153, advancers are 4-1 ahead of decliners and NAZ is up 31. NYSE had record volume in the first 1/2 hour due to "quadruple witching" marking the simultaneous expiration of contracts for stock index futures, stock index options, stock options & single stock futures. The Treasury bond yield is 4.11%, little changed in recent days.
Circuit City (CC) reported a larger than expected loss, down $1.40. With witching and going into the end of month (also year end), the rest of today's market is up in the air.
Thursday, December 20, 2007
Dow has been kicking around the low end of the 13-14K range all month. This range bound behavior probably will continue in the final days of Dec.
Wednesday, December 19, 2007
Crude oil supplies dropped more than expected last week, oil was up 1 to over 91. Ugly stories keep coming out about the mortgage mess here which affects banking institutions all over the world. Let's see how this negative news, tax loss selling and year end adjustments play out.
Tuesday, December 18, 2007
Bank of America (BAC) remains just under 42, a sensitive point in recent years. It's still trying to make up it's mind which way to go.
Big news items are European Central Bank will issue of $500B in bonds for help with the credit crunch plus profit gains at Goldman Sachs (GS) and Best Buy (BBY). Unfortunately Goldman Sachs is down 8 while Best Buy is down 1 (down 2 earlier). They're worried about the quality of Goldman earnings & Best Buy has a confusing picture about better results which are only so-so. Housing starts fell 4% to the lowest level in more than 16 years & building permits fell 1.5%. This news brings out sellers.
Tax loss selling is punishing stocks selling near their lows. Housing related, REIT's, junk bond funds, etc. keep slipping. MLPs are down from mid year highs, but have stayed in a narrow flat range for a few months (310-290). Now they're testing the low end of the range. Bank of America (BAC) is below 42, a level that had support for over 3 years. They may see more selling. Tough markets provide opportunities to buy beaten up stocks at attractive prices. Now is the time for homework
Monday, December 17, 2007
OK the picture is a little old, but an excellent one. Maybe I feel that way because I took it. Look for the mother Bichon under my friend's arm plus 4 puppies in front. Now the puppies are in their middle years. My friend still has the mother & one of the four.
They're all saying: HAPPY HOLIDAYS!!
In corporate developments, Ingersoll-Rand (IR down 4.50) is buying Trane (TT up 8.50). It's nice to see some corps have cash to buy other corps. Leveraged buyouts, so popular earlier this year, are pretty much history today.
Retail sales seem to be coming in so-so. Online retailers are now maturing, rapid growth rates are diminishing. Stores are probably doing OK but not great. Cold weather in the east will help clothing sales, but the remaining business may be nothing special. Cold weather hurts home sales which don't need more problems.
Sunday, December 16, 2007
Out of the gate on Mon AM - Australia, New Zealand & Tokyo stock markets are down - Asian markets are set for a weak start after Fri in NY.
Friday, December 14, 2007
I think Dow will be testing 13K next week, i.e. down. Bank of America is testing 42. I'm not a big technical guy, but hard not to notice. That's been it's floor in the last 3 years. The year prior, that was roughly it's ceiling. Next week we'll find out if goes thru the floor.
Citigroup (C) said, get ready for this, "it plans to move assets from seven 'structured investment vehicles' onto its books and put up $49 billion to help the SIVs repay their debts." Does anybody know what that means? That's sort of assumed to be "good" by the experts, Citi's up 45 cents, OK! I guess the idea is, what's a few billion among friends? Moody's cut Citi's credit rating last night because Citi is straining it's finances. Their dividend is in question. Other banks aren't much better off, credit crunch problems drag on.
Thursday, December 13, 2007
Credit crunch seems to be one long word these days, there are still plenty of problems out there. Housing remains soggy. But the markets aren't ready to test the low end of the trading range (13-14K) they've been in since July.
Financials continue on their bumpy road. Washington Mutual (WM), Citigroup (C), Countrywide (CFC), Bank of America (BAC), JP Morgan Chase, (JPM), Wells Fargo (WFC), Wachovia (WB) are all selling off today. Countrywide, the nation's largest mortgage lender, has a ton of problems. Today the Attorney General in Ill. announced an investigation into their lending practices. Their stock is back below 10, yielding 6% assuming the dividend continues.
Meanwhile oil pulled back to 93, still quite high. The long Treasury bond yield is up to 4.14% (bonds are being sold). It looks like the next 2 weeks will be bumpy for stocks if not down & I have a feeling Jan will not give us the traditional rally many expect.
Wednesday, December 12, 2007
Coca Cola (KO) was up again today. This is a stock in my IRA, I keep my eyes on it. Coca Cola was up while banks were hammered, telling you were money is flowing (sort of flight to safety). The 10 year treasury yields 4.08%. I think tomorrow will be another tough day in the markets.
There was good news. ATT (T) had great news yesterday. Another Dow, MMM (MMM) today had a favorable announcement about it's future. But rough times for banks is affecting the entire market.
Tuesday, December 11, 2007
Tomorrow morning will probably see a big selloff first thing. After today's meeting, the rest of the year could see a lot of selling. In addition, tax loss selling may become more significant. This is the time to line up value stocks & look for buying points at lower prices.
Hang in there. In a couple of hours we'll hear from the FED.
Monday, December 10, 2007
In terms of bargains, MLPs have been trading flat for a few weeks. Nothing wrong, that's the way it is. They have nice yields & generally are quick to raise distributions. They are tax efficient but all represent tax hassle. Bargain hunters might take a look.
UBS is writing off $10 billion in subprime loans, they're up 1. McDonalds (MCD) report same store sales up 8% last month with much of the gains from overseas. They're up 1+.
A big gain tomorrow will push the Dow near 14K, near it's record from reached a few months ago. For my money, that's too much too fast. But the Dec rally is in full swing so enjoy it.
Sunday, December 9, 2007
The puppies send their wishes for:
Friday, December 7, 2007
Smith & Wesson Holding Corp (SWHC) dropped about 3 after cutting it's outlook for 2008. Want to help, buy more guns.
The subprime "fix" news is getting a lot of attention. There are about 3MM adjustable rate subprime loans, about 19% are past due. Without help more will become past due with higher resets in the coming months. The help is not a quick fix & only applies to marginal loans needing help. At the toll free phone number, callers are told there would be "lots of hoops to jump through" to obtain the five-year freeze. This program is voluntary & will vary depending on the lender. Can you spell, "uh-oh?" Reality is setting in & sounding a lot worse than many had originally thought.
The subprime mess is not only big but global in nature. Mortgages are sold in pools to financial institutions around the world. Asian & European banks have already taken big write-offs on their investments. Northern Rock, the largest lender in UK, has been struggling for weeks trying to remain alive dealing with a huge mortgage portfolio. Countrywide (CFC), our largest mortgage holder, has rebounded to 10, they're still struggling. They know & are trying to prevent more foreclosures which will add houses to an already soggy housing market.
Enjoy the up market this week. Tues, it should be up big after the FED interest rate cut announcement. Then we'll worry about the future.
Thursday, December 6, 2007
Tonight Asian markets are up following through on gains here. Oil is back at 90 and the Treasury bond rate is up to 4.0%. I think buyers will rule in tomorrow's markets here.
Stocks got a boost with the announcement allowing some homeowners facing foreclosure to freeze their interest rates up to five years & refinance their mortgages. The plan created by the Treasury Department, mortgage lenders & banks could help over 1 million homeowners. I think mortgage holders may be in for a rude shock when they reprice their loans down based on low interest rates for 5 years. It looks like the stock market figures tomorrow will take of itself.
The housing slump's impact on consumers adds to worries that the holiday shopping season is getting off to a shaky start. Target (TGT) is down 5 after announcing that Dec sales will come in below forecast. Walmart (WMT) is projecting same store sales up 1-3%. This sounds like uh-oh to me.
Wednesday, December 5, 2007
The administration worked out an agreement with industry to freeze interest rates for certain sub prime mortgages for five years to combat soaring foreclosures. Details will be announced. In the old days, that would have been called government meddling, viewed as bad. In the mean time, enjoy the up market.
Fannie Mae (FNM) slipped after cutting the dividend and selling preferred stock to raise capital. OPEC met & decided not to increase oil production which generally would send oil prices down. Among other things, they are worried about sub prime problems. Oil remains around 89.
Tuesday, December 4, 2007
Monday, December 3, 2007
This is tax selling month not to mention various funds adjusting for year end results. While Dec has been a good month, anything is possible. For the time being, next week's FED meeting on interest rates seems to be one of the big market movers. Oil is under 90 & the Treasury bond rate is under 3.90%. Who knows what's going on? On tax loss selling, financials, REITs & especially junk bond funds may decline. Watch your favorites to look for future bargains.
Sunday, December 2, 2007
Sub prime loans continue to be a major problem area. The Treasury plans to rescue home loan borrowers by freezing low introductory interest rates before they soar. But this "fix" may not solve fundamental loan problems which are far-reaching. It won't spare many borrowers & bankers from the pain of escalating foreclosures & defaults, borrowers will still be required to make monthly payments. The housing market's ongoing problems can drag on.
Friday, November 30, 2007
As badly as banks performed, technology did a little worse in November. Tech is still playing defense, investors are losing interest after it's rapid runup. The best performing group was non discretionary (i.e. P&G (PG) and Altria (MO) which makes Philip Morris). Away from sexy techs into boring necessities which should weather a slowdown better. The VIX is around 23, down a bit. Over 20 suggests high volatility. Be ready for more bumps in the road.
Some groups have not participated, selling near recent lows. MLPs (master limited partnerships) have been in a 290-310 range for a few months. Today they're up 2 to 297. REITs (real estate) have been hit hard, many offering high yields of 6-10% or more. Junk bond funds investing in speculative quality bonds have been hit hard in the current credit situation. Traditionally their yields are 4 points (400 basis points) above the treasury rate. Now it's easy to find 11% yields, a good 7 points above the 1o year Treasury rate. The last 2 groups especially will be under tax loss selling pressure in the coming weeks. But those yields are getting very nice for those willing to accept the extra risk.
Thursday, November 29, 2007
Federal Reserve Chairman Bernanke tonight hinted another interest rate cut may be needed to bolster the economy. That may add a couple hundred points to the Dow tomorrow. However Dell (DELL) reported earnings after the market close that disappointed investors, causing the stock to sell off 10%. I think tomorrow will be another up day after the hint about a rate cut. Dow futures are already up 75 in overnight (for us) trading. High volatility will continue.
One interesting news item was an oil spill from a pipeline run by Enbridge, one of the master limited partnerships. The MLP index measuring the group fell back 2 to 295, it's flirting with the recent low. That news affected many in the group not to mention helping push oil prices up after the recent pullback.
Wednesday, November 28, 2007
Wednesday's jump was also the biggest one-day percentage gain for the Dow since April 2, 2003. The broader Standard & Poor's 500 index climbed 40.79, or 2.86 percent, to 1,469.02, logging its best two-day point gain since April 19, 2001. The Nasdaq composite index shot up 82.11, or 3.18 percent, to 2,662.91, giving the technology-dominated index its largest two-day point gain since March 4, 2002.
Asian markets are following through, up 1-3% tonight. The dollar strengthened, the yen rose to "only" 110 while the Euro slipped slightly to 1.48+. Dollar's strength probably follows the strong market. Oil fell to around 90, jut a couple weeks ago it was pushing 100. Of course, this remains a high price for our economy to digest.
The market is now overbought, short term buyers who made money will sell to lock in profits. In addition, short sellers may have bought stock back to cover their short sales. Such purchases will not last. This is how volatility works. Stand by for more big swings in the rest of this week.
Tuesday, November 27, 2007
This may be just an oversold rally, let's see how it plays out.
Monday, November 26, 2007
Asian markets followed the lead in NY, down 2-3%. Shanghai at 4900 is down about 20% from over 6000 just a few weeks ago. It looks like uncertainty continues to rule the markets.
Here are 4 AP stories hitting the market today:
(1) A consortium led by Virgin Group, wants to take over Northern Rock, the battered mortgage lender, & wants to re-brand Northern Rock as part of Virgin Money business. The consortium would repay 11 billion pounds ($22.7 billion) of the 25 billion pounds ($50 billion) the Bank of England has loaned Northern Rock on completion of the transaction. The remainder of the money would be paid "in due course," Northern Rock said.
(2) HSBC Holdings (HBC), Europe's largest bank, will bail out two troubled funds it manages by transferring $45 billion of their assets onto its balance sheet. Additionally it will also inject $35 billion into the two funds,
(3) Citigroup (C), bracing for big credit-related losses in the fourth quarter, is looking to lower costs which could mean another round of job cuts at the nation's largest bank.
(4) E-Trade Shares (ETFC) fall after news potential buyers are debating mortgage portfolio's cost.
The retail news after Black Friday was considered "good" but the negative news from the financials is too much for the markets. Uncertainty continues to be the word everybody is talking about, not good. This is shaping up as another tough day as traders can not get uncertainty off their minds..
Sunday, November 25, 2007
Friday, November 23, 2007
Thursday, November 22, 2007
I keep thinking about the weak dollar. The dollar keeps hitting new lows, tough to figure out. The Yen is "up to" 108+, last month it was around 115. Then they said 113 was very high. The Euro is over $1.48. Today, the head of Airbus said they're being hurt very badly by the cheap dollar (planes by Boeing cost less while theirs cost more). That's good for US business but gets complicated in a worldwide economy. Each multinational company will have it's own reaction to the weak dollar as many have divisions in other countries. In the coming months, we will learn more about how US companies are impacted by the weak dollar.
Enjoy today's holiday!
Wednesday, November 21, 2007
Tuesday, November 20, 2007
Tomorrow, last day before the holiday, should be a quiet day. But, all bets are off. VIX (volatility index) is 26, a very high level. Wednesday & Friday may be very volatile. One day, the problem is oil, now at 98 again. The next it's mortgage worries. The next day has reduced forecasts for retail sales. I think the weak dollar is hurting. It's getting difficult to keep track of all the problems.
Countrywide (CFC) was the focus at the end. After the ugly news about the government mortgage agencies (FRE & FNM) earlier, they denied they have bancruptcy problems. I'm looking for another volatile day tomorrow.
Monday, November 19, 2007
I worry about the weaker dollar. The Euro is $1.46 while the Japanese yen is up to 110 (now they're forecasting 100). This is a very complex issue especially for multi nationals since they are affected in many ways. But I'm afraid on balance the weaker dollar hurts the US economy & the stock market.
I remain positive for some banks, housing related issues REITs, MLPs & the Dividend Aristocrats in the S&P 500 index. This remains homework time preparing for better buying opportunities. Remember, Chicken Little didn't prove right.
Sunday, November 18, 2007
I first learned about MLPs (master limited partnerships) only 6 months ago. They are a slightly different type of investment, offering units not shares & paying distributions rather than dividends. Their track record is tracked on the Alerian MLP index (^AMZ at Yahoo Finance):
The last 12 months started off with a major move from 260 (a plateau) to around 335. Then, the index went thru a bumpy flat period followed by a large sell off to around 300 in early August. Since then it's been in the 290-310 zone. In the last couple of weeks, it slipped back, looks like it will test the low again around 290. I like these companies. Demand for building more pipelines in the US seems unlimited in the coming years. Analysts figure growth as yield plus their growth rate. In other words, if the unit yields 6% plus the distribution is expected to grow at a 5% rate, they project investment growth of 11%. The distributions are tax efficient, unfortunately being a limited partner also means a limited amount of tax hassle.In Asia, it's already Mon, their stock markets are mixed. We have a short trading week because of the holiday, but expect high volatility. The Dow looks like it may test the lows of its 13-14K trading range.
Friday, November 16, 2007
Thursday, November 15, 2007
Dow futures are down 30, a very early signal tomorrow may be a another tough day here. Use the time of declining markets for homework, to select good value stocks for investment.
This is good time to mention MLPs (master limited partnerships), a recent favorite of mine. This group has emerged in the last 10 years or so to medium size. The businesses sell units (not shares) and pay distributions. Their distributions provide a good yield (around 6-7%) & are tax free. However, they also represent tax hassle. Income, 10-20% of the distribution, is reported on a K-1 form in March (i.e. late) plus income is divided among the states where it does business. Computer tax packages can handle the numbers, but it does add complications to taxes. As partnerships, they are generally not allowed in IRSs & other retirement accounts. For the venturesome, seeking income & growth, these may be interesting.
I started learning about these about 1/2 a year ago, & like them. Their index is the Alerian MLP index which is 299, up from 100 at the end of 1996. That's a nice run. The comparable index including distributions is about 650, even nicer. There is a lot to learn about these investments, a good place to start is search for:
master limited partnerships primer
A few brokerage firms have excellent 50+ page reports. There is a lot to learn about this area, I will continue discussing it in the future. This read is an alternative to more & more writedowns.
Wednesday, November 14, 2007
Let's see what tomorrow brings.
Tuesday, November 13, 2007
After the big rise in today's US markets, Asian markets are following through with gains of 2-3%. Everybody feels good, or at least now. US futures in Asia are showing little change even though Asian markets are strong.
Monday, November 12, 2007
Two of my favorite stocks are Caterpillar & 3M (a member of S&P's dividend Aristocrats group), multinational Dow stocks which should do well going forward. They have low P/E ratios and decent dividend yields, good stocks to keep in mind if they decline.
Asian markets are mixed but down a little tonight. Tomorrow may be another tough day here.
Sunday, November 11, 2007
NAS stocks were slammed hard late in the week. Meanwhile gold is 835 while oil pushes 100, a price that will bleed thru to economies around the world. Already (Sun evening), Japan, Hong Kong & Korean markets are lower 2-3%`each. The US stocks markets will be open on the semi-holiday of Mon. Get ready for another rough week, keeping in mind that lower prices bring more attractive buying opportunities.
Friday, November 9, 2007
The VIX index (volatility) is up to 28, very high indicating that 1-2% daily moves in the Dow are more likely. While not good or bad, this could keep the nervous types from jumping back in. Look for a bumpy ride again next week.
This morning Merck announced that they will set aside almost $5 billion for Vioxx law suites. That's considered "good" because it allows them to get on with the business & forget the past. OK! Bigger news was that Wachovia took another $1B hit on it's loans in October (note that's just October). The market is getting tired of more ugly stories from the banks. But they will continue for awhile. Chances are most will take a "big bath" in this quarter to "clean" the books making it easier to start the new year fresh. I don't mean to be knocking banks because I like them & their yields. However more tough stories will be coming in coming weeks.
REIT's are down with the rest of the market. There is fear of adverse effects from a slowing economy, but I like the fact they have hard assets (properties) and better ones have excellent track records of paying increasing dividends. Many have high yields, going higher.
The financial news can be depressing in these times and probably will continue for at least a few months. This is the time to study and prepare for buying opportunities, for very smart investing.
Thursday, November 8, 2007
Financials including banks had a fairly mild day. But Washington Mutual yields about 11% and Countrywide is coming under a dark cloud again. Big bank stocks hung in there as sellers finally gave up after 1 EST. It's hard to remember the last time a bank reported good news!
Wednesday, November 7, 2007
I like companies with excellent track records. Despite recent stories, some banks have done well and offer nice dividend yields. REIT's, master limited partnerships (MLPs), and selected stocks offer nice yields which will become even more attractive if the market slips further.
I've liked REIT's (real estate investment trusts) for a long time. Most have moved up nicely since early in the decade. In the past, yields have been 10-12% for higher yielding stocks. Today some offer yields around 7-8% as prices have pulled back this year. Most REITS own properties, typically apartments, malls, shopping centers, offices, etc. many specialize in one area of the country. Large ones are going international, buying properties in Europe, Japan, Mexico, etc. While this is a relatively new business compared with big companies going back over a century, some are able to point to records of 10-20 years. REITS are getting hit by worries in credit markets, but should be examined as ong term investments with nice yields. Good ones will survive rewarding the smart investor.
Tuesday, November 6, 2007
Monday, November 5, 2007
China stocks took a big hit. Petro China after becoming the first trillion dollar company was down 12% on NYSE. I sense they are trying to tell us something which may not be good. Tonight will be a good time to watch Asian markets on cable networks to learn more about their problems, probably related to worries about their business with the US.
Today the stock market started out. Premarket Dow was down 100, but losses have been cut back at midday. Credit worries starting with Citi spread to other major financials & the rest of the market. The advance/decline ratio is over 3-1, not good. This week is shaping up as a tough week for the stock market.
The big news in Asian markets is China, the Shanghai market is near record levels. It's helpful to keep in mind that their investors are not sophisticated, their rapid rise will have it's day of reckoning. Today China stocks on NYSE are down big led by Petro China ADRs, off 10%. Petro China is in the news for becoming the first trillion dollar company. US investors should folow overseas markets to learn how they influence ours.
Asian markets react to their local business there and their exports to countries led by the US. Sub prime problems in the US affect them because their financials have invested in them forcing write-downs like in the US. Keeping an eye on these markets is important for an investor here to be a very smart investor.
Sunday, November 4, 2007
When investing for the long term, the best indication for the long term future is the record of the long term past and referred to as track record. Many companies have track records demonstrating excellent long term growth, some for over 100 years. The easiest measures to follow are sales, EPS and dividends. Now with internet resources available to all, it is easy to get this information.
One excellent guide which is not well known was recently put out by Standard & Poor's. They are probably best know for the S&P 500, an index most people follow which includes 500 of the biggest and best know corporations in the US. A couple of years ago, they came out with a subset which attracted my interest, S&P 500 Dividend Aristocrats. In this elite group are members of the S&P 500 with a track record of “25 consecutive years of increased cash payments based on ex-dividend dates from January1.” Membership is very limited, only 56 qualify (such companies as Exxon, Citgroup and IBM are not included)! Many have paid higher dividends for 30 – 40 or 50+ years, a solid record of long term growth. With these track records for dividends, there is strong indication their growth will continue. But companies are not all equal.
Included are some of the biggest banks, drugs, insurance companies, foods, beverages & retailers, all with different prospects and outlooks. But starting with this list, it should not be difficult to narrow it to a few in which an investor sees continuing high growth rates for the future. S&P 500 Dividend Aristocrats is the type of list I like for getting very smart investing ideas.
As you can tell,I am basically a fundamental person looking at long term trends and values. But I also follow technicals or charts. The Dow had a great run recently, but maxed out in July at 14K. Since then it's had a very bumpy ride with a substantial increase in volatility. The performance of high volatility can be expected to continue as banks are adversely affected by mortgage and bad loan problems, housing in the US market is in a major recession and oil approaches $100 a barrel with implications for higher inflation rates in the future. In addition overseas markets, especially the fast growing Asian ones, run the risk of being adversely affected by a slowdown in the US market. While this does not look like a good time for investing, it is the time to study beaten up industries and stocks to identify which ones will ride out the storm. Bargains are coming, this is the time to prepare for opportunities to buy for very smart investing.