friday’s big drop

It’s never great as an investor to see all your stocks drop 400 points in one day.  However, we can make great use of this.  First, the unemployment report came out to the worse decrease for the past 30 years.  We had a 10% increase in job unemployment.  Second, oil continued to raise even more going up $10.  In California, it’s no surprise to see $4.50 just for regular unleaded fuel.  These two things were the main contributors to the friday decline, but we still have the problem with the housing crisis and international pressures that continue to bring down many stocks in the US stock exchanges.

I like to make the best of this situation and I want to look long-term in a couple stocks.  To start putting my portfolio for this blog, I’m going to throw down some cash into mining stocks and resource stocks.  As China continues to industrialized and Dubai continues to grow and the world grows, we will continue to see huge growth in all mineral stocks.  Steel stocks are already really high such as TX.  Mining Tool stocks such as JOYG continue to profit and make huge gains.

I have two stocks that intrigue me: CDE and PAL.  CDE, Couer d’Alene Mines Corp, is a silver mining company.  It’s a great defensive stock.  It’s one of the single stocks on Friday to actually move up a percentage point.  As the United States continues to get more into inflation, this stock will increase in value as the silver prices increase.  Gold will continue to go up also, but I’m looking specifically at CDE because it’s at a very low price right now.  Technically it’s at the lowest it’s been since 2003 and I doubt it will go any furthur than that.  Silver is also a useful mineral to build engines, jewelry, computer parts, and much more.  It will continue to grow in demand as businesses require it.  To sum up: Silver and Gold are going to continue to rise and CDE will be in my book for monday if I like the price.

PAL, North American Palladium Ltd., is a palladium miner and a tellerium miner.  These are used in the catalytic converters for cars.  We see a decline in trucks and SUVs, but as long as cars are being driven, there will be a need for these minerals to build their engines.  PAL is at a very cheap price right now $5.36 at the close on Friday.  I will look to get in on monday and take advantage of this stock before inflation moves it up.  If it goes down furthur, I might wait to get in at a good price.  I will time the stock and if I cannot get in at the price I want, it’s ok, there’s always tomorrow.  Palladium and tellerium are minerals that will eventually run-out if another mine is not found.  These minerals are only in Russia right now and as supply gets low, you will see the price rise up.  To sum up: palladium is going to rise for the long-term.