Tuesday, October 21, 2008

JPMorganChase's buy list


Last Friday,JPMorganChase published a list of sixteen stocks that they feel will outperform the general market in a global recession. The stocks were:

3M Co.
Baxter International Inc.
Colgate-Palmolive Co.
CA Inc.
Devon Energy Corp.
General Mills Inc.
Gilead Sciences Inc.
Google Inc.
Hewlett-Packard Co.
McDonald's Corp.
Merck & Co.
Monsanto Co.
Nucor Corp.
Philip Morris International Inc.
Union Pacific Corp.
Visa Inc

There isn't much surprising about this list. They are all megacap stocks with tons of cash on their balance sheets. It features defensive healthcare and consumer staples companies, some energy plays which will act as an inflation hedge, and commodities stocks that have recently hit 52-week lows.

Do not go out and immediately buy these stocks. They are fine candidates for a watchlist, but don't plunk down your hard-earned cash just yet. It's almost certainly too late for any short-term gain from this list. Besides, this is aimed at institutional investors, many of whom have to be fully invested due to the language in their charters. "outperform" is a relative term and not a guarantee of positive returns.

If you're dollar cost averaging into an index fund or a stock that's already on this list, then buy all means, continue to buy and lower your cost basis. However, please don't feel that you have to open a new position in a stock due to the gravity of this flimsy list.

2 comments:

27bytes said...

We should blog link exchange to increase our technorati auth rank for a
win-win situation.

My blog: http://mulzar.com

Reply ASAP if you're interested!

Anonymous said...

I was surfing around the web today and came across your
> website. Great site, and congratulation on your achievement.
>
> My job here at INO.com is to discover new websites just
> like yours to represent our world class financial products
> and help drive traffic to your site!
>
> The quality of your site makes a great match with our
> products, and I believe it would be a great fit. My company
> has a simple business plan that I know can help monetize
> your website even more. In fact we guarantee it.
>
> Our partnership is not going to cost you a penny. You see
> what I like about my job here at INO.com, is that I am not
> selling anything. I am just sharing with others the great
> opportunity that INO.com has to help you make more money
> from your website.
>
> I don't want to take up too much of your time today,
> but I would love to talk about how we can start working
> together for a mutually beneficial partnership.
>
> Yes, I am a real person, and yes I really did look at your
> website. My toll free number is 1-800.538.7424 ext 128.
> Please feel free to call me anytime between 9 AM to 5 PM
> Eastern standard time.
>
> I look forward to hearing from you soon.
> Thank you for your time.
>
> Sincerely,
>
> Michelle Boswell
> Partner Relationship Specialist
>
> Our world class properties
> http://INO.com
> http://marketclub.com
> http://tv.ino.com