David Dremen a column article entitled “Surviving inflation” at Forbes.com. The bullish Dremen recommends people stay away from Treasury Bond and maintain an exposure to stocks in order to beat the inflation.
Dremen reviewed the 29 picks he made last year:
Read the complete David Dremen Forbes column article “Surviving inflation”.
Dremen reviewed the 29 picks he made last year:
In 2009 I recommended 29 stocks and three exchange-traded funds, including 21 picks carried over from 2008. Had you bought them all, including the 6 I recommended twice, you would have enjoyed a gain of 29% after an allowance of 1% for transaction costs on new positions. Had you put the same money on the same dates into the S&P 500 (with no transaction cost), you would have been up only 22.3%.And these are his recommendation for this year
This year I think you should maintain your stock market exposure. Sell all three ETFs: Financial Select Sector SPDR, SPDR KBW Bank and SPDR S&P Oil & Gas, redeploying proceeds into better prospects. Buy, if you haven't already, these seven that were 2009 recommendations: Anadarko Petroleum ( APC), Freeport-McMoran, Eaton Corp. ( ETN), Bank of America ( BAC), Wells Fargo (WFC, Financial), Chesapeake Energy (CHK, Financial) and Valero ( VLO).In particular, he commented on this following two stocks:
Anadarko Petroleum(APC, Financial) hunts for oil and gas in the U.S. (where it has 2 billion barrels of oil equivalent in reserve) and abroad (250 million barrels' equivalent). The exploration program this year is the largest in its history, budgeted at $5.5 billion. The company will benefit from the doubling of natural gas prices in the last six months, as 70% of its reserves are gas. Net last year was a loss of 28 cents a share, but cash flow (in the sense of net plus depreciation and amortization) was $8.18 a share. For 2010 I expect a share net of $1.80 and cash flow of $11.
Freeport-McMoran Copper & Gold (FCX, Financial) produces 4.1 billion pounds of copper and 2.6 million ounces of gold a year. Freeport is a haven for investors coping with rising inflation. It earned $2.5 billion, or $5.86 a share, on revenue of $15 billion last year. I expect a share net of $7.75 this year.
Read the complete David Dremen Forbes column article “Surviving inflation”.
