A tough day for my investing strategy. The Dow was up almost 100 points and I was down. Only 7 of the Dow 30 Industrials were down today and I own 4 of them, CAT, AA, JPM, & AIG.
CAT continues to be hit because of disappointing earnings for the 2nd quarter. CAT kept its guidance for the year showing confidence that the 3rd & 4th Quarter results will be better.
AA continues to fall because of the lack of a deal with Alcan and that there apparently are no suitors interested in buying the company. AA did close off its lows today. Could it be that the stock has found a bottom? More than likely it is because of the great broader market today.
JPM & AIG were hit because they are in the financials. In addition AIG is likely held down because of the ongoing conflict with former CEO Maurice Greenberg. JPM released good earnings last week. AIG has a large footprint overseas. I think that these two stocks will be among the financials that will weather the subprime storm. It may be that over the next few months an excellent buying opportunity will present itself here.
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