Tuesday, March 23, 2010
THE FUTURE OF THE STOCK MARKET?
I don't know. One of my luckiest moves (and my life has fortunately been filled with them) was to post a blog stock challenge on 3November08 when the market was down. I then bought Ford in March a little more than a year ago, so my blog stocks are: Microsoft, General Electric, Lockheed Martin, Boeing, Ultra Basic Materials and Ford. With Obama coming in as President in January of 2009, the thought of purchasing military industrial complex stocks was insane. Even I knew that. In fact, I urged the future President to reduce defense expenditures by 10%, every year, in my initial Huffington Post article. However, each of the companies above were pioneering sustainable energy areas, so I did this mostly to highlight the future of renewable energy.
But why did I buy Ford? Well, Ford does have those hybrid cars. But the purchase of this stock was more in honor of Roberta Nichols, who I served with on the U.S. Secretary of Energy's Hydrogen Technical Advisory Panel. She was a true pioneer, and was an advocate for the methanol car and passed away five years ago. Since was then into the internal combustion engine, but my vision sees the direct methanol fuel cell as this future. The problem is that no one agrees with me. Well, maybe Irvin Barash does.
Oh, I should report that these stocks are today worth 269% more than at original purchase. Interestingly enough, of the 30 Dow Jones Industrials, Boeing has increased in value the most this year at 35% and General Electric #2 at 21%.
Maybe you missed it, but in addition to the Health Bill being signed today by Barack Obama, catching a ride on to this measure was a good overhaul of the college aid program. The U.S. Senate, buoyed by the House success, yesterday passed on the Wall Street reform bill to the floor. About the health package, it is officially known as the Patient Protection and Affordable Care Act, and was introduced by Congressman Charles Rangel, who, as you know, was forced to step down as chairman of the Ways and Means Committee.
Thus, my advice is, as the market is at year and a half highs, just about when I initiated my challenge, and could still break 11,000, where 14,198 (7October07) was the all-time Dow Jones Industrials high, with housing looking dismal and jobs still scarce, I wouldn't quite today sink a bunch of bucks into stocks. But will the market go up or down from today? As I said, I don't know. No one does.
So as I wrote above, the DJI average leaped 103 to 10,889, with world markets mostly up, save for the Orient. Gold remained unchanged at $1105/toz and oil sits around $82/barrel.