So this week is literally taking the piss out of me…anyone feeling the crunch?

The US government decided out of nowhere to change the direction of the rescue ship and are going in a whole different direction now. Okay, so some might argue that this is good, while others like myself feel this is insane…how can the government show confidence in the markets when it SUDDENLY changes it mind.

As expected, we all saw the markets begin to take early and mainly throughout the day. Then, like a midnight madness sale, the bargain hunters took a few moments to grab some discounted stocks and hold them for another, better day.

In my research, which I tell everyone out there to do…I thought I would never see a stock like GE go down so low…i mean its been almost 12yrs since it was at this price…so with a confirmed dividend schedule now out for 2009, I got into it even more to: a) average my current price of $19/share down to something lower and also: b) to take advantage of the dividend payout which is going to workout in my advantage at income that is greater than if I had the money sitting in a bank account that is probably on the verge of going under.

Speaking of which, one of my bank accounts in Richmond Indiana sent me a little letter. Basically stating that the bank was having some problems, but I should not worry. Okay, I give them respect for sharing with me this information, but with a bank that is small and only based in this town, what are the other account holders that might panic going to do? how about an old fashion bank run to switch to a more stable institution? Hopefully this does not occur, but on the back of my mind the thought lingers on the stability.

Back to some bargains. Today I filled an order for RIMM at 39.90 which is great. Its up so far today and beyond that, the launch date for their iPhone version called the “Storm” is due out in Canada at the end of November along with some other countries. So the buzz is there and this should open themselves to another revenue stream and whole new audience. I just wonder how RIMM will capitalize on the apps that Apple sells and obviously makes money off…this will be interesting.

Another stock that I picked up today was ICICI Bank. I did get in at $16/share and as I write this its actually lower but I am confident that a rally can ensue either late today or early next week. Not looking to hold this for too long.

So did anyone pickup GM? What did I say in the last installment. This thing might be limping but its hard to see a piece of America collapse and help should be on the way…I had a limit price set at $2.99 and it went through. It did shoot up at one point 0.31/share which when you break it down to % profit is 10% gain and I cannot complain. Although I didn’t sell, I know there will be other chances to sell as this can and should gradually go up over time.

Also, before I pause for today, I just wanted to mention one thing. A lot of people that want to play the market and invest who may be a little intimidated with the whole process, I would suggest you try joining those “fantasy” stock markets online. They play with virtual money and that means you don’t lose anything and can try out different risk strategies. I personally tried that with my Facebook and sometimes make highly risky buys to see what the trends would be. Its helped me find bottoms and at the same time have the chance to play with millions of dollars which at present I don’t have in real life…but soon..for all of us I hope!

Until the next time…Happy Investing!

Aman, MBA

Ps. Any comments or concerns, email me or post below.

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