Gloom and Doom Continues

Another tough day on Wall Street. The S&P fell below 1000 to its lowest levels in five years. The NASDAQ has lost more than 16% over the past five days, the largest percentage decline over that period since December 2000. The Gloom and Doom is now widespread in the U.S. as well as Global Markets. But its not just Wall Street, Main Street is suffering as well as the economic struggles continue to worsen.

Is Wall Street nearing a bottom? We sure hope so, the losses have surely been wrenching for most investors. Our sense is that Wall Street is nearing a bottom, although we may have more declines to come over the next few weeks until the selling fear is exhausted. On the other hand, we do not think the worst is over for Main Street and the economy. Jobs and economic conditions are likely to remain very difficult for months to come, well in 2009.

From our view, there are some really compelling stock buys out there for those investors that truly have a longer term horizon. Good stocks have simply been beaten down to levels far below what even tough recession like conditions would dictate. For investors with cash to invest, here is a short list of stocks that we find very compelling, that will beat the market over the long term: EME, WDC, FLS, OLN, GDI, GNA. We currently own all of these stocks and yes they have been beaten down to levels far below what we think they are worth.