Stocks Slide After Rise In Unemployment Rate
Not much surprise to anyone in the unemployment numbers today but was enough to continue the downward pressure on the markets. And with the first trading week of 2009 now in the books it does in fact look like it could be a very rough year. Granted it is only the 1st week and the markets will certainly be looking ahead for Jan 20th and the new administration. But in my opinion we must expect a trader bounce at best for the markets.
Stocks slide after rise in unemployment rate
Friday January 9, 4:40 pm ET
By Madlen Read and Stephen Bernard, AP Business Writers
Stocks tumble on worries that rise in unemployment will further hurt spending; Dow falls 143
Full Article
With all the negative news coming on a daily basis I think our current idea considering oversold and consumer value related companies is faring much better than the overall market and we will continue to blog about companies worth a look as the economy continues to lead the markets.
Many investors are hoping the bull will re-emerge once the new President and his administration are in office and I do believe that we have a chance of some recovery. However I also do believe this will take several months to implement and be more company specific and event driven than sector rebounds. This will make it more important than ever to continue treading cautiously when consider companies for our long term outlook.
Currently 2oversold.com favors 3 gold companies - Yamana Gold, Northgate Minerals and Western Goldfields. You can read a recap of all there here: ( Gold Company Recap.)
We also are very excited about the prospects of video/pc gaming accessory maker Mad Catz Interactive (MCZ). It is our opinion that this company may do very well over the next 12-18 months due to the economy outlook and the need for “value” accessories for both the PC and Video Gamer.
You can catch up on our Mad Catz opinion article here: Can Mad Catz Prosper When The Big Ones Fall? .
We also think companies like Fred’s Dollar Stores will do well in a recession type economy. You can read our blog of Oct 29th, 2008 about our Fred’s opinion here: Fred’s Article.
These are just a few of the companies that 2oversold.com has blogged about in the last 6 months as we started seeing signs that we were in a recession and one that might last for a couple of years at least.
We think there are some great company stories that will emerge from the rough times and will be blogging throughout 2009 on about companies we think are worth a look.
2oversold.com is a blog for the individual consumer and private investor. We are not experts in the markets nor do we make any recommendations of any company. The companies we blog about are discussed for the purpose of this blog only and this should not be considered as investment advice.
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[...] Today’s selling was broad based with most sectors off and again this is no surprise. We have been blogging for months now that it is our opinion that the individual investor can no longer play sectors as they once did but would do better to look for individual companies that are oversold and provide value to the consumer. [...]