... the bears are finally right about the double pip recession... it may be coming, but if Professor Dolan is right, then the market could just be overreacting. The market was definitely high beta in drama today, with all major US stock indices declining in synchronised nosedive fashion.
I took the opportunity to first look into a potential hedge for my unfortunate BAC buy, which took about a -33% hit in just a week. Gold miners were my first option, but as I wasn't sure whether gold will continue to move higher, I decided against potentially buying a top and asked myself what could potentially fare well even in spite of a downturn that appears imminent.
Finally, I stumbled upon an energy stock with a high enough dividend yield in the name of Statoil (STO), which also happened to make a high impact oil discovery today. I got in at $20.31 to lock in a 5.64% dividend yield. STO is already trading at a Price/Sales ratio of below 1. Its new North Sea discovery will probably bring its Price/Book ratio closer to 1, although it probably would have been most prudent to wait for a break below its 52WL to buy. But prudent I am not, so as others jumped out of equities and ran for their lives, I took another step deeper into the water. Will I get washed out by the waves?
-9.21% SBA
-5.74% Roth IRA
-5.55% DJIA
-6.90% Nasdaq
-6.66% S&P
9 Figure Man... save me and show me how to swim... I'll be good this time...
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