Friday, October 17, 2008

JP Morgan's Lee tries again

Back on June 6th, JP Morgan strategist Thomas Lee came on CNBC and said to buy stocks on the bad unemployment number. He said surges in unemployment happen at the end of the cycle. Unfortunately, then, we were just at the beginning of the decline in employment; not at the end.
http://aaronandmoses.blogspot.com/2008/06/put-some-lipstick-on-this-pig.html

Now for those who have lost 30% of their money since June 6th, JPMorgan strategist Thomas Lee has has come out with the "Franchise 16" stocks that can weather the current economic storm.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=amu.lZETzIPw

3M Co.
Baxter International Inc.
Colgate-Palmolive Co.
CA Inc.
Devon Energy Corp.
General Mills Inc.
Gilead Sciences Inc.
Google Inc.
Hewlett-Packard Co.
McDonald's Corp.
Merck & Co.
Monsanto Co.
Nucor Corp.
Philip Morris International Inc.
Union Pacific Corp.
Visa Inc

This time, the promise is not that these stocks will move higher, but that they will out-perform the stock market during the coming "global recession."

At least now they recognize the recession that they didn't previously see!

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