April 14, 2008 at 3:00 pm by Tom Lydon
According to some, opportunity is knocking for blue-chip stocks and the exchange traded funds (ETFs) that count them as components.
The S&P is around 14% undervalued right now, according to Morningstar Analyst Jeffry Ptak. Broader indexes and "blue-chippy" stocks are where the excitement may be at, reports Chuck Jaffe for MarketWatch. Ptak feels that investors could feel more comfortable going after broad indexes instead of focusing on thin, volatile bits of the market.
Whatever your feeling, when you make investment decisions, stick to a plan such as using the 200-day moving average. If short-term is more your style, look at the 50-day moving average and sell when it drops below or 8% off its high.
Blue-chip opportunities:
Read the disclosure, as Tom Lydon is a board member of Rydex Funds.
Tags: S&P 500
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