Eye on the Dow: Uuuuugly Tape
Equities tumbled on Wednesday after another brick of economic worries hit investors across the face.A weak report on growth in the services sector from the Institute for Supply Management was today's culprit.
With the economy on cool mode, we're continuing to advise our readers to "load up" on more consumer staple stocks, such as Proctor and Gamble (PG).
When the economy tailspins, every company under the sun will gripe and moan about damaged profits.
Not the secular plays, though.
Even during Depression-like conditions, people still have to brush their teeth and shave.
On another note, our last three recommendations: Urban Outfitters (URBN), Charles Schwab (SCH), and Red Hat (RHAT) are all up on a down day.
That has to be a good sign.
Urban Oufitters-- whose shares we recommended on Sunday (see below) -- got a nice lift today after Bank of America upgraded the stock, citing "accelerating top-line trends and opportunity for further margin improvement."
On the bear side, Baidu.com is finally ready to hit that $60 price target we put on the stock 6 weeks ago.
We think BIDU will hit $60 this week, which would be 2 weeks shy of our expected crash date.
Readers who jumped in and shorted BIDU (not that BIDU's shares were easy to borrow) on the day of our report -- and held on for the 8 weeks we suggested -- would have tasted a 100%+ return.
That BIDU went as high as it did proves that investors haven't learned a damn thing since the Bubble popped -- they (investors) are still rewarding useless assets nosebleed market caps.
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