Brutal, brutal week. I read once some years back that real Bear markets aren't quick. They are long and wrenching and ugly as the Bear seems determined to shake every last investor out of the market. I don't know if that is usually the case or not. But it sure looks like we're heading in that direction. In fact, the Dow 5500 call Bill Gross of Pimco made several years ago suddenly appears within reach. Anyone buying stocks now will be rewarded and looking smart five -- or better yet, ten -- years from now. While you're waiting, here are five items to check out between now and Monday.
- David Winters of Wintergreen was interviewed by Bloomberg TV (scroll down). Winters used to work for Michael Price of Mutual Series fame and Jim Grant has reported investing in his fund. Winters says there are incredible bargains around the globe, and states that the best bargains he is finding are outside North America. He names names -- including Japan Tobacco, Swatch and Genting (a Malaysian-based hotel casino operator).
- Winters mentions this Economist piece in his interview. It considers the importance of cash, and steps companies are taking to hoard it. It ends nicely, pointing out that cash is not only a cushion for riding out he bad times, but can also be useful in making strategic moves to expand market share and the like.
- Portfolio holding Capital Southwest (CSWC/NASDAQ) released its latest quarterly report this week. President and Chairman Gary Martin reports finding a few things to do, and points out the company has progressed nicely with buying back shares. I would imagine this outfit will be taking advantage of opportunities presented in the ongoing meltdown. Yet there are no guarantees.
- Paul Ingrassia's column in The Wall Street Journal about the Detroit automakers is hard to argue with. And I won't. Any bailout package could easily see the heads of GM and Chrysler hit the road (he says that Ford's top guy should remain). Rick Wagoner has been running GM for eight years, so if he goes, he goes. I've always been an agnostic on Wagoner, and think he's tried to turn things around without ruining the dealers and doing away with the UAW. Whatever happens, longtime readers will not be surprised to read that I hope Bob Lutz remains, because GM designs have vastly improved under his leadership.
- Austerity is certainly a word we'll be hearing more of in the months ahead. Bill Sardi gives 13 tips for saving money in a turbulent economy. Some of his suggestions have more appeal than others, but even he would say (I think) these are food for thought and may spark additional ideas in your own mind. I found that trying, as much as possible, to buy foods that haven't been processed is not only only cheaper -- but leaves me feeling better as well. But maybe I'm just imagining that.
Stay well, stay safe and I'll see you next week.
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