Which sectors will you buy aggressively now?

thinker70 answered one year ago …

With the very real possibility of hundreds of bank failures in the months ahead, additional "credit problems" spreading to credit card companies, consumers cutting back purchases, the potential for additional sectors to fall further, this is a time for great caution, not agressive buying.

Bear market rallies are an opportunity to sell all but the most solid free cash flow generating dividend paying well established companies. Indeed there APPEAR to be some great bargains in a number of sectors, which is why I am compiling a list of companies whose current share price is BELOW (NAV) Net Asset Value, but in this irrational market where deleveraging continues, there may well be further price declines.

There are two strategies that can profitably be employed in the present volatile market to acquire companies with good fundamentals for a long tern buy and hold investor. When you identify companies that appear to be bargains based on their history and current status. Put in limit orders well below current bids if you think they have further to fll and you will be filled if and when the market has a selloff that seems to be a weekly occurence! A more agressive strategy would be to SELL PUTS at a price below current bids letting the market PAY YOU for waiting until it reaches your buy level, but it it never does and the put expires worthless, you KEEP the premium you were paid for selling the put!

Patience will be rewarded, in a volatile market like this well selected puts and calls can be more profitable than actual stock purchases and tie up less capital while you wait for the marketr to establish a clear direction.