Blue Chip

A company that is well-known and that has been established over a number of years is considered a blue-chip stock. They have been through the boom times and recessions, giving investors confidence that they will remain a viable entity in the future. Blue-chips are usually less volatile than other stocks, as they have a steadier stream of predictable income and usually have extensive ownership by institutions, which can hold shares for a longer period of time than individual investors. Blue-chips are usually the market leader in their respective sectors.

Business Cycle to Favor Companies Like Microsoft in 2015?

By Wednesday, December 17, 2014
Dividend Reinvestment My Top Investment Strategy for 2015While the S&P 500 and Dow Jones Industrial Average have given up some decent capital gains on the oil price shock, the NASDAQ Composite has been holding up and relative outperformance among technology stocks is a good thing. Good buys are tough to come by in a stock market that’s already gone up, but higher-dividend-paying technology.

One Group of Stocks Every Portfolio Should Have

By Monday, June 30, 2014
Why Every Portfolio Should Include a Restaurant StockEvery stock market portfolio should consider restaurant stocks if the risk tolerance allows for it. This industry sector has a long track record of delivering good capital gains to investors, recognizing, of course, that all restaurant chains experience periods of turmoil and changes among consumer preferences. In the restaurant.

Why Key Stock Indices Can Still Advance in Wake of New Monetary Policy

By Monday, September 16, 2013
Key Stock Indices Can Still Advance in Wake of New Monetary PolicyThe broader market is showing renewed strength in anticipation of the Federal Reserve’s decision on quantitative easing and third-quarter earnings season. Typically, September is a volatile and tough month for stocks, but there’s a real resilience to the current stock market. Even the NASDAQ Composite is holding up well, considering.

This Old Economy Stock’s a Moneymaking Winner

By Wednesday, January 16, 2013
Old Economy Stock’s a Moneymaking WinnerI’ve always liked railroad stocks; they are the backbone of North America, and they’re very good at making money. Often in this column we consider the stock market performance of Union Pacific Corporation (NYSE/UNP). I firmly believe that this company will continue to be a winner for investors. As part of an ongoing series in this.

Going Large-Cap for Capital Gains? Yep, and It Works

By Monday, January 14, 2013
Going Large-Cap for Capital GainsBack in April of 2012, oil and gas giant ConocoPhillips (NYSE/COP) created spin-off Phillips 66 (NYSE/PSX) from its downstream energy assets. In the energy business, the term “downstream assets” refers to refining and marketing. For every two shares held in ConocoPhillips, shareholders received one free share of Phillips 66..
Sep. 5, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)


Dow Jones Industrial Average Dividend Yield 2.62%
10-year U.S. Treasury Yield 2.19%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.


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From: Michael Lombardi, MBA
Subject: 200% Profit on the Ultimate "Fear Gauge" Play

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