September 8, 2015

Some large cap stocks looking attractive

I wrote months ago that I had completed research on a number of large-cap stocks that I would find attractive at the right price.

Well, several of those companies are finally moving into my buy zones -- most notably Goldman Sachs  and Morgan Stanley today. And there will probably be more if we see any further market weakness.

Am I generally bullish? Not really, yet -- but the first move toward turning more bullish is to turn less cautious and start to accumulate value.

My advice is that we should all try to be emotionless, particularly given the 200-point-plus drop in the S&P 500 in recent days.

I find that some who were previously bullish (particularly in our comments section) are now very glum and bearish. I differed in view both then and now, although I might be wrong.

Remember, my approach to investing is virtually indifferent to charts. Instead, I pay close attention to upside/downside ratios and risk vs. reward.

Above all I subscribe to Warren Buffett's adage: "Price is what you pay, value is what you get."

Stay tuned.

Position: Long GS, MS, SPY