blood on the market?

"Buy when there's blood on the market" so the saying goes. Now that it looks like there's blood on the market or that there will soon be. Where should one look to make purchases? There's also that saying that crisis is opportunity. So where are the opportunities now?

Let's have a look at the root of the crisis to see.

Subprime mortgage
This one's a no-brainer. This is the reason why the first six months of the year were expected to be painful. But amidst all the fuss over the U.S. subprime mortgage, who would have thought that there would be another cloud of gloom that would overshadow that problem and make it seem pleasant.

Rising Oil
The rise in oil prices is changing the world. If it's here to stay we're going to have a lot of adapting to do. Companies within industries that are dependent on oil will feel the brunt while those that can decouple from oil dependence can potentially reap giant rewards.

Food Crisis
With a lack of food or a perception of a lack thereof, the prices are going up. That's bad news for consumers but good news for those that can produce food at low cost.

Shrinking disposable income
The biggest bogey showing up in light of these changes is the shrinking disposable income of consumers. Basic necessities will take the spotlight.


So what's a good company to buy into?
I'd look for companies that don't depend on oil or that use oil efficiently as well as those that provide necessities. What are these companies? I'm looking out for them and will post what I find soon. Off the top of my head, JFC maybe... historically they weather economic downturns pretty well as the richer classes go back to good old jollibee. Pharmaceuticals also seem like a good choice. Whether we have plenty of money or not, we will definitely be buying meds. Mining is still the same great growth industry we knew last year so I'll keep my eyes on companies like PX, GEO "the people's stock" and AT.

For now i'm consider buying JFC, PNB, MWC, ATS but that's another story all together.

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