Friday, June 14, 2013

My Stock of the Day: WFC


AAII’s John Templeton investment strategy shows average annual total returns into double digits over the last 10, 5, and 3 years and this year to date through April 30.
In a discussion of Templeton’s strategy, AAII describes it as comfort and safety-value investing. At this writing, AAII identifies seven stocks that meet Templeton’s criteria, led by WFC (Wells Fargo & Co.). It’s rated as a moderate buy by AAII.
My five-year Yahoo chart shows lots of sideways movement by WFC, and that means lots of whipsaws in pricing—more easily tolerated by buy-and-hold investors than others.
My three-month WFC chart indicates a possible recovery from a brief downdraft in the stock’s price trend.  So does my three-month VTI chart (a measure of the total stock market) 
The current obstacle faced by investors is widespread fear of another global bear market, apparently created by the widespread adoption (outside the U.S.) of budget cutting (by national governments) rather than pump priming (which leads to job creation).

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