Investors should buy shares of industrial companies, which have improving operating performance, “reasonable” valuations and “strong” cash flows, according to Oppenheimer & Co.

Brian Belski, Oppenheimer’s New York-based chief investment strategist, recommended 22 industrial companies, including Caterpillar Inc. (CAT), Union Pacific Corp. (UNP) and FedEx Corp. (FDX) He considered companies in the Standard & Poor’s 1500 Index that have a forward price-to-earnings ratio lower than 15, and S&P stock rating of B+ or better, estimated 2011 and 2012 earnings- per-share growth greater than 10 percent, and increasing forward free-cash-flow yield.

“Investors are becoming increasingly nervous regarding the sustainability of global and domestic economic growth,” Belski said in a note today. “We recommend that investors focus on higher-quality areas with consistent to improving operating performance, reasonable valuations and strong cash-flow generation. In our view, industrials provide investors with all these attributes.”

A gauge of industrial shares in the S&P 500 has risen 7.2 percent this year, compared with a 6 percent gain in the broader benchmark index. The industrial companies have a price-to- earnings ratio of 17, while the S&P 500 is trading at a multiple of 15.1.

The following list contains the 22 industrial companies Belski
recommends. Ticker symbols are in parentheses:

Actuant Corp. (ATU US)
Applied Industrial Technologies Inc. (AIT US)
Brady Corp. (BRC US)
Carlisle Cos. (CSL US)
Caterpillar Inc. (CAT US)
CSX Corp. (CSX US)
Cummins Inc. (CMI US)
Curtiss-Wright Corp. (CW US)
Dover Corp. (DOV US)
Emerson Electric Co. (EMR US)
Eaton Corp. (ETN US)
FedEx Corp. (FDX US)
Honeywell International Inc. (HON US)
Hubbell Inc. (HUB.B US)
Illinois Tool Works Inc. (ITW US)
Lennox International Inc. (LII US)
Norfolk Southern Corp. (NSC US)
Parker Hannifin Corp. (PH US)
Regal-Beloit Corp. (RBC US)
Rockwell Collins Inc. (COL US)
Snap-On Inc. (SNA US)
Union Pacific Corp. (UNP US)

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There are many ways what you can do when market is falling. You could probably find advice on selling your positions and go sideways, buying more stocks, do nothing etc. Well it is all about strategy.

I remember myself when I was trying to figure out which way to go. Originally I used a strategy of selling stocks which hit my stop loss. Unfortunately during markets like today I was stopped out quite quickly. I ended up collecting losses. One after second.

I was thinking what I can do to prevent it. What strategy would be the best? Which would work for me?

Well, it is all about strategy.

With a small account like mine I couldn’t afford swing trading or timing the market. Although I still believe in this strategy as good one and I still believe that it is possible to time the market. But timing the market will increase trading frequency and also you may pick up more wrong stocks or wrong timing. With a small account you cannot afford it. That was my lesson.

So I must hold stocks longer. I must pick and buy stocks, which won’t be that volatile and which will hold value better than small caps. Besides some other reasons, this one was the one why I chose dividend paying stocks.

But what to do when the stock market is falling and almost all your holdings go south? First don’t be panicking. Mr. Market is once again having bad mood and overreacting. Based on the strategy he is actually creating a great opportunity for buying.

For me it is an opportunity. As I mentioned in my previous post I try to teach myself to stay calm, when the market is growing and get ready when it is falling. Watch your investments and save money. You may reinvest dividends or invest new savings into slowly growing stocks during long term strong bull trend, but during volatile market like today I am just saving and sitting tight. Now when the market is in correction I am preparing to act. I was waiting for Kinder Morgan stock as I said in my previous post, but I have bought CTL instead. CTL showed better results to me, better dividend yield, growth and other numbers I look at. Now, after I purchased CTL I am again waiting for KMP.

When I first mentioned KMP it was trading at $75.84. Today, a few days later KMP closed at $72.09. Given the size of the company, industry it operates, services it provides and dividends it pays this stock doesn’t look as a bad investment to me. Buying it cheaper is a great opportunity.

When the market or the stock shows strength again I will buy and add this stock to my portfolio. If the market continues growing, I will be saving money again for another buy opportunity.

How do you invest or what you typically do when the market is growing or falling?

In my few posts I wrote that I was looking for new opportunities to make some extra cash which I will have available for investing. Almost every week I search the Internet to find those opportunities.

It is not easy, because the net is full of scam today. Many times I come across a web which claims that you can make thousands of dollars a day. Yeah. If it was that easy, everybody would be a millionaire already.

So the first rule is, if it looks to be too good to be true, it probably is a scam. So I am not interested.

The second rule is that if any of the promoters promises you to reveal a secret way how to make dollars IF you pay only $xxx fee, sorry, I am not interested either. I am looking for making some cash, not pay cash to somebody.

There are some ways how you can make cash.

• You can start your own business (I am currently so busy at my job, that this option is not for me – yet).
• You can take part time job (I already did it, but had to quit. I could sleep only 4 hours a day between two jobs, so not for me).
• Affiliate programs (this can be a great source of additional income, but I wasn’t successful so far. I will be trying, however).
• Investing (I think, after circa five years of learning I finally got the idea how to invest successfully).
• Stock, options & penny stocks trading (Here I still need improvement and learning, so not doing it yet).
• Alternative sources (see below).

I do not know how to call alternative sources using different name. I came up with some which makes me money.

Lending Club

I wrote about this site many times. I am currently making 12.27% (annual rate). Everybody can do it and with a little effort the account can be self-working. And that is exactly what I wanted. I am a lazy person, so something what can work for me is good for me. Everyday I just glance thru the account to see how it is doing and move forward. It is growing and making me money. I have a plan that as soon as the account reaches a certain level, I start pulling some cash out and reinvest in my other “Trading” account.

If you want to give it a try, click on this link or banner.

If you open an account and invest, Lending Club gives you $25 dollars welcome cash. And that is all you need to start. If you invest more, you will be eligible for more money from Lending Club.

Hits4Pay

This program requires a little effort. It is a program where you get paid for reading emails. It doesn’t pay big money, but better small than nothing. You have two options how you can make some cash:

1. Reading emails and make circa 0.05 cents per email (so you won’t get rich quickly – did I disappoint you?)
2. Recruiting new members – referrals. (I do not have much experience with this, but I give it a try.)

When I started my account some time ago I received $10 welcome bonus. Nice to start. Then you need to do some work. If you wish to give it a try, click on this link or banner below.

Among many other websites, Hits4Pay looks the most reasonable to me. If you wish to give it a try, click on the banner above. You get $10 sign-up bonus which is good to start with. They pay every time you reach $25 dollars on your account.

YouData.com

I came across this web site recently. When you sign up, you need to fill up a questionnaire based on which you start receiving ads. They call it “MeFile”. I must admit that I liked those ads so far. They definitely were in a range of my interest. They also pay nice rate per ad and they pay to your Paypal account. There is no minimum, so you will be receiving even small cash.

All other websites I visited were either scam or worthless. However, I do not say that there are no other, better programs. I might not have visited them yet. So if you know about any other, which provides reasonable payout, let me know. I will definitely give ’em try.