I haven't updated this part of my blog (or any part for that matter) in quite awhile, but I thought I'd close the loop on this for some final results as we head toward the end of year.

Overall, not bad if I do say so for myself. All of my picks ended the year in the green with all by two outperforming the Dow Jones Index quite handily. Also, I since I didn't take into account dividends, the actual return overall would be better than indicated here.

Stock......Bought.......Current (as of 12/24)
AA..........$ 9.26.........$16.34 (+76.5%)
ATVI......$10.57.........$11.44 (+8.2%)
DOW......$15.81.........$28.01 (+77.2)
PFE........$17.65.........$18.60 (+5.4%)
MO.........$15.10.........$20.37 (+34.9%)
MRK.......$21.94.........$36.99 (+68.6%)
JNJ.........$47.90.........$64.70 (+35.1%)
-------------------------------------
Total.....$138.23.......$222.21 (+40.5%)

Dow Jones.............................(+16.4%)...

The market has continued to post strong gains. Financials seem to have stabilized with the stress tests come and gone and banks that "failed" the stress tests were able to raise capital without too much trouble. Today, based on an upbeat report on consumer confidence index, the market quickly overcame early skittishness in reaction to North Korea's missile tests to post a solid 2.3% gain. However, there are still major problems that seem to be glossed over. Real estate prices continue to drop (another 19% compared with last year, now at 2002 levels; who says that time travel isn't possible?). Credit card defaults are sure to be looming in the horizon. And of course, GM going bankrupt appears unavoidable.

Anyone with a modicum of financial common sense should have seen this coming a mile away (too bad that didn't include anyone in Washington). A company that burns billions of dollars a month is beyond saving. GM received $19.4 billion from the federal government...

What a difference a month makes. The market has rallied to six straight weeks of gains into first quarter earning reports which overall have been exceeding expectations (though one could argue with expectations so low, how could they not meet them?). Dare we think the worst is over and the market truly bottomed out in March? After all, early reports from the financial sector, the scapegoat for the world's economic woes, have shattered expectations. Wells Fargo (WFC) gave an early preview of record first quarter earnings. Goldman Sachs (GS), the last Wall Street bank standing, posted earnings that were triple what analysts had forecast. Even beleaguered Citigroup (C), once thought to be next in the big bank death watch, finally posted a profit after nearly a year and a half of hemorrhaging money.

Not so fast.

I'm one of those "glass half-full" types that sincerely, and perhaps foolishly believed that the market as a whole had been generally...

Again because of a very busy February, I was unable to update this part of my blog so sorry for the delay for the 2-3 people that actually read this. I hope to update this on a monthly basis.

Not a very auspicious start for this part of my blog. Only one out of my three recommendations has so far panned out and I really whiffed badly in my two misses. But live and learn as they say.....

First on the miss parade is DOW (down a whopping 59%!) as I underestimated their financial difficulties and did not expect a big dividend cut, though in retrospect it probably should have been obvious. It does seem that the dust has cleared with the whole merger with ROH (turned out great for ROH shareholders who stuck it out) and in the long run, I think it will also be good for DOW shareholders. Even with the dividend cut, at its current share price in the $6.50 range the yield is almost 10%. With things settled, it might not be a bad entry point since the monkey is...

Obviously, 2008 was a pretty bad year for the stock market. The Dow Jones index shed nearly 33% by the end of the year and 2008 also marked the downfall of a number of hallowed financial institutions. At one point, it seemed a least one major bank was going belly up each week bring the overall market down with them. 2008 was also the year that a Wall Street legend, Bernard Madoff, was exposed one of the biggest frauds in history costing victims in his Ponzi scheme an estimated $50 billion. However, historically, for those with strong stomachs, times like this can also be an opportunity to enter the market. While no one, especially someone like myself who is simply an amateur, can say with any certainty when we will hit bottom, from a pure fundamental standpoint, there are some incredible values out there. More as a personal project for myself, I’ll periodically (1-2 times/month) post some thoughts on some stocks which I think are worth looking at. Keep in mind that I have a long-term...

It doesn't take a financial genius to see that the economy is in the crapper. The housing market is in a historical decline. Quite literally, a major financial institution is failing or getting "bailed out" almost on a weekly basis. The world economy is gripped in a credit crisis of historical proportions. Earlier this week, the DOW posted the largest single day numerical drop in history: 777 points, shedding over 9% after the House failed to pass the first bailout plan. Today, the market was up almost 300 points in anticipation of Congress finally passing a amended bailout plan (pork bellies and all) and when they finally did.... the market responded with a massive nose dive from its highs, ending the day down over 150 points. The fear is palpable and as they say "blood is in the streets."

Call me crazy, but to me, this may be a golden opportunity to start investing in the stock market. Just hear me out.

First let me just say...