The recent talk by the UAE of possibly repegging their currency to a basket rather than the dollar makes me bullish on the GCC region and GCC stocks. I am staying away from financial and real estate stocks in general but there are stocks with significant value in the GCC region. The fact that the possibility is being spoken in public is very significant and cannot be ignored.
The Dogs of the Dow is a fairly simple investment strategy, you pick the 10 highest yield shares in the Dow Jones Industrial Average and put an equal amount of money into each of them. Adjust the portfolio once a year so that it once again has equal amounts in the top ten shares by yield.
Sectors to watch as China Raises Oil Processing 12% to Meet Demand
I believe this piece of news should be followed for possible beneficiaries off this move. Iâ€™m not a commodity trader, so I wonâ€™t pretend to be able to call oil going to $50 or going to $100, but refined petroleum products in this case might benefit refiners and oil shippers. Refiner capacity is not just shorthanded in the U.S.
Alan Brochstein of AnalystforHire is predicting the Dow drops to 1150 by the 2008 elections. His thought is that we are in a bear market after an impressive five year run. He doesn't think it will last long, but it will hit hard, retracing at least Â½ of the gains in the S&P 500. From trough to peak, the rally was about 800 points over those 5 years.