Yaa, so we all are pretty aware of the fact that market is falling in this recession period, indeed; the graph is moving downwards. Same fall with US economy…its going hand-in-hand with finance market. Therefore, there is a tie-up between this ceasing market & this flimsy economy….but, this tie-up has generated some new, fabulous scopes of investment in a specific set of stocks. Investment, at this time, in those stocks is a wise plan….guess which are they? “Blue chip stocks”!!
Really, man….start saving some of your money right away for investment in blue-chips. At present situation, the trades with Blue-chips are very likely to turn out to be damn profitable….because these stocks are carrying good potential & better possibilities. Why? Reasons are below:
1) No body is predicting, that the blue chip stocks are or will be on sale.
2) All these kinds of stocks are being ignored & undervalued by most of the buyers currently; the rates are also at their lows.
Let me give an example:--As of March 9, The trade for Apple Inc. had been running at $83 per share, where as in last may it had been traded at $189. Anothet stock, Sony is currently running the trade at $19 per share where as in last June it was sold at $51.
3) At least 193 stocks out of the 500 Blue-chip companies enlisted in the S&P have an earnings-based price to earnings ratio of 10 or lower for the past year. That means, they are maintaining such ratio constantly for 1 year now….
All S&P 500 companies do not have the status of “Blue-chip”; for example, in the year 2007 only 36 were there. So, a bit search work is required in order to find themout….but, too much endevour isnt needed at all. Just some basic stock market research over your computer…and you’ll find those companies you are planning to invest on. Just listen to the names. Check out the blue chips and pick your favorite.