Monday, July 12, 2010

US stocks are cheap!

According to this article, 13 out of the top 25 companies in the S&P trade at or below 10 times estimated 2011 profits. All 25 stocks look reasonably priced, with good upside potential and little downside. Barron's has written favourably about many of the companies on the list. Banks (JP Morgan, Bank of America, Citigroup and Wells Fargo) on the list are expected to show sharp gains in 2011 profits due to declining provisions for losses. This could be the best time to buy.

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