The small gain today, which occurred basically in the last hour is likely nothing more than a bounce back from the heavy selling Tuesday. I would be very leary of wading back into this pool thinking the pullbacks in stock are a buying opportunity. This market reminds me of the old "Lost in Space" series, as in "danger, danger, Will Robinson." As I opined yesterday the stocks that would likely hold up here are tobacco and agency REITs and that is exactly what happened today. CTL, Centurylink is getting taken out back and shot currently and that is likely overdone. Many analysts downgraded the stock when it slightly missed estimates and reported more than expected costs in it's latest Qwest merger. CTL is a good company, run well, and in my opinion a good buy here. It might go down further later this week, but you would be hard pressed to find a safer 8.3% dividend now. If you are into more risk taking my favorite ERF is treading near $30 now and pays a 7% dividend and you will likely do ok there as well long term. It is also based in safe Canada.
I continue to look ahead with great concern over Friday's job report. I frankly no longer trust the government to report true employment and wonder sometimes if the number is not politically motivated. However anyone with any intelligence knows employment is down significantly and if the report shows such we could see some serious selling. Might even be conpitulation, or just all out get out of the market before the world ends selling. We are down almost 1000 points here in the last week and fear reins so more selling is certainly possible. I posted a couple of weeks ago for investors to look at hiding in high dividend blue chips and if you did so then you are likely better off today than most, but it is still painful. I had four green stocks today versus three yesterday out of 21 current positions, so I feel your pain.
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