Bill Gunderson

If you are worried about Syria and the market-Read This!

Recently the stock market has become less desirable very quickly. Over time I have found that weakness in the market can come on the scene rather fast in a fashion similar to the Indianapolis 500. Cars are zooming around the track at high speeds and all of a sudden something happens. Maybe some oil spilled on the track or somebody left a muffler on the track. Just like that, the flag goes up and alL the cars have to slow down to about 25 mph.

Now let’s shift to the S&P 500. The market is the same way! We have been zooming along at about 200 mph for the past several months, and every week I have been reporting in my newsletter that the domestic stock market, small and mid-cap stocks, and biotech, pharmaceutical, and the technology sectors are leading the way.

Well, all of a sudden, three things crept up on us: 1) the debt ceiling, 2) taper talk, and 3) Syria. They are all big threats, but Syria could be the most dangerous one.

After all, was it not Ezekiel who received a vision of the end of the world whilst sitting by a river in Syria? Hmmm, maybe I better keep my eye on the developments over there! And who knows where this all leads—it may lead to nothing and all blow over, but this is definitely not a time to have your foot on the accelerator because there seems to be a muffler on the track of the S&P 500 once again!

That being said, there are also new opportunities arising. On days when the market is down, I handle the day just like I do any other day. I look at my holdings-ONE AT A TIME! Most are holding up just fine despite the new worries. Others are not, those are the ones that I want to get rid of.

I currently have had a pretty good sized position in an income/dividend stock that is oil related, which seems like a good place to me to be right now considering the troubles going on in the Middle East! In fact, I added to my position recently which was good timing because the stock continues to hit NEW ALL-TIME highs!

This is a stock that I own in my growth and income accounts. That is correct—I said growth and income. I do not have people invested right now in bonds or Real Estate Investment Trusts earning those dividends and coupon rates. Why? Because bonds and REIT’s are interest rate sensitive and interest rates are going up. Instead, I have an eclectic mix of stocks that pay dividends and also, in my opinion, have the potential for capital appreciation going forward.


Bill Gunderson

Bill Gunderson is the CEO and Chief Market Strategist of Gunderson Capital Managment in San Diego, CA. He is also a professional money manager, former research analyst, author of Best Stocks Now. http://www.pwstreet.com