Saturday, January 5, 2013

Debbie Downer Economy

We were taking a look at our portfolio, and currently everything but our blasted Brazil fund is up, so much so that we are at a total profit of about 6% despite EWZ's poor performance. We are looking at a year of slow growth and a generally down economy, so the challenge becomes what do we do. We were wondering what could go up in a down world.

A while back we were talking through some stock valuation strategies, and it sounds like we need to do that for serious now.

So here's the strategy:

Find a brand that we all recognize  and has been around for a long time, that we expect to be around for a long time, but also hasn't quite recovered yet.

Here's our list:

Kraft
Chipotle
Proctor & Gabmble
CVS/Walgreens
Wawa
Hormel
Boston Beer Company
Craft Brewers Allaince

Some of these are less established than others, but we are going to take a look and see if anything indicates that it might be undervalued. The bottom line is that we really need to just get in there and invest something, because holding cash doesn't make a lot of sense--unless things are going to be really, really bad.


Profit.

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