Friday, April 11, 2008

Blue Chip Stocks - think again!

Blue chip stocks - part of every good portfolio. Right?


From Wikipedia, the free encyclopedia
A blue chip stock is the stock of a well-established company having stable earnings and no extensive liabilities. The term derives from casinos, where blue chips stand for counters of the highest value. Most blue chip stocks pay regular dividends, even when business is faring worse than usual.

GM Daily Chart

On the other hand, GE bagholders are looking at this plunge
GE Daily chart

Norton's comment: there was a time when these would have been considered the foundation of a conservative investment portfolio. Now, they are not fitting the definition we had expected. Now it would seem that risky commodities in agriculture and precious metals and taking a bearish bet on the good old US dollar are sounder investments.

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