Search
Home | Healthy | Wealthy | Wise | Products | Newsletters | About Us| Contact

The Attack of the "Old Maids"

By Andrew Gordon

Do you remember the card game "Old Maid?" I remember playing it with both my kids many years ago. They loved it. They hated being stuck with that odd queen at the end of the game. Now they’re young adults and have moved on. But I’m still playing the game.

I have no choice. Dozens, if not hundreds, of companies are pretending they’re not holding the Old Maid. In other words, they’re hiding the full extent of their bad debt, assets, and hedges.

The practice is worse than ever – thanks to the spread of the subprime contagion. It’s shown up in surprising places like municipal bonds and Chinese banks. Right now, companies harboring Old Maids are a dime a dozen. I fear that soon they’ll be worth a nickel.

If you don’t want to get stuck with a loser, how do you invest?

  • It’s more important than ever to do your homework. That means going beyond relying on a company’s statements. Just a couple of days before Bear Stearns was rescued by JPMorgan, they swore their finances were fine. Meanwhile, plenty of people who follow Bear Stearns thought otherwise… and were making their suspicions known in blogs and the financial press. Not every rumor is true, but neither should you summarily dismiss them. Keep an open mind.
  • Stick with high-quality investments in sectors you trust. There’s too much we still don’t know about banks and their exposure to bad debt – so stay away. Big companies with solid track records, substantial overseas business, and low debt may not make you a bundle. But, these days, it pays to play it extra safe.

[Ed. Note: ETR's Investment Director, Andrew Gordon, is the editor of INCOME, a monthly financial advisory service that uncovers income-generating stocks that promise safety (first and foremost), along with much-higher-than-average profit potential.]

Similar Articles:

VN:F [1.6.9_936]
Rating: 0.0/10 (0 votes cast)
VN:F [1.6.9_936]
Rating: 0 (from 0 votes)

Sign up for our free newsletter!


:   Address:



Leave a Reply


Sign Up for our Free Newsletter

OVER 450,000 Subscribers Have!

:

Address:


What's Hot Now!


Stop Playing Standard Stock Market Games
Spend just 30 minutes a day in front of your computer – using “tactical surgical strikes” to hit the market where it hurts. You could be making $5,000, $10,000, or more per week – whether the market falls, soars, or goes sideways.

ETR Reader Challenges Us to "Put Up or Shut Up"
We just got a note from longtime reader Peter Genot. He's taken the home-study courses and worked hard at building his Internet business. But, he said, it's still just limping along. He's ready for a real online income - a raging river of cash is more like it. Here's what we told him...




Testimonials

There’s something for everyone.

ETR is a superlative and unique offering on my computer during the week. It simply has no peer at what it sets out to do. There’s something for everyone. I’ve gained wisdom, knowledge, background information, understanding, and, not the least, some badly needed business acumen.

"Your writers and contributors represent the best in their varied disciplines. Stay with it."

Richard K.



Home | Healthy Living | Wealth Creation | Success Secrets | Products | About Us | Useful Links | Contact Us | Past Issues
Meet the Experts | Meet the Staff | Speak Out Forum | Success Books | Success Stories| Vocabulary Words
Partner With Us | Join the Team | RSS | Site Map

Republish ETR's Powerful Content On Your Website Or Blog Without Charge!
Get the no-hassle details, today!

Early To Rise 245 NE 4th Ave., Suite 201, Delray Beach, FL 33483 | Phone 800-718-2269 or visit our help desk.

Content Disclaimer | Whitelist Information | Resources | RSS News Feed | Press Releases

We respect your privacy. View our privacy policy.

©Copyright ETR, LLC, 2001-2009