We hit solid green last week as the markets popped upon news of the MOAB (Mother of all bailouts). The government is proposing to buy up to $700 billion in mortgage-backed securities from banks and investment houses. Today the Oracle of Omaha sunk $5 billion into Goldman Sachs preferred shares. He indicated that he believed that the government will act rationally and follow through with the bailout. This makes me believe the deal will go through.
I have heard several people refer to this as the worst economy since the Great Depression. I recall the dot-com bubble burst in 2001. Funny how all those companies were not given the same sympathy by the government. I also look at my own situation and how I have continued to live below my means. Yet now all of us who have saved our money and lived in houses we could afford will now be asked to foot the bill for the bailout of companies with CEOs making millions upon millions of dollars. We will be implored to do it for the good of our society.
The Thoroughbred Folio has fallen back into the red after a brief respite last week. Still we must look at the overall performance compared to the overall market. The S&P 500 is down -19.2% since December 17, 2007 which was our Folio start date. The Dow Jones Industrial average is down -18.8%. The Thoroughbred Folio (without dividends) is only down -7.8%.
Family Dollar (FDO) has remained steady at the lead. Rohm and Haas (ROH) is still slightly ahead of Wrigley (WWY) for second place. The top of our Folio shows very little movement in the turbulent market. We have finally tallied over $70 (2.3%) in dividends for the year to date.
Gannett (GCI), Regions Financial (RF), and KeyCorp (KEY) hold on to their respective spots at the bottom. Regions and KeyCorp have gained more ground and now they leave Gannett way behind. I have said this over and over, but I still like Regions and I do own shares.
Thoroughbred Performance (Week 40 of 52): $-164.09 (-5.47%) Dividends To Date: $70.02
Top 3 Stocks
- Family Dollar $31.82 (42.43%)
- Rohm and Haas $25.86 (34.48%)
- WM Wrigley $24.79 (33.06%)
Bottom 3 Stocks
- Gannett $-37.74 (-50.32%)
- Regions Financial $-32.20 (-42.93%)
- KeyCorp $-28.24 (-37.65%)
Stocks used in this post:
- (FDO: 25.07, 0.00%, Yield: 1.95%)
- (FITB: 7.71, 0.00%, Yield: 15.30%)
- (GCI: 6.09, 0.00%, Yield: 26.27%)
- (RF: 7.66, 0.00%, Yield: 16.19%)
- (ROH: 71.25, 0.00%, Yield: 2.25%)
- (WWY: 0.00, N/A, Yield: N/A%)
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