Perfect timing for my next investment blog entry. Dow at lowest point in two years. Economy seemingly sputtering. Housing has major issues. Oil at all-time highs (Rita Coolidge sang it for Octopussy a few years back...). Sentiment near an all-time low. Unemployment rate above 5%. Etc. Etc. Etc. There can't be any good reason to own stocks, can there?

I disagree. We many not see an immediate turn-around in the stock market, but it will happen. For the bottom-fishers who've been picking up financials (hey, I picked up some Wachovia Bank calls a few months ago.....expired worthless), homebuilders, industrials and other stocks which keep on making new lows, at some point the strong companies will turn business around and stocks will reflect that.

There's never a 'good' time to speculate on a company's stock, but there are bad times to speculate and the past few months have been such times. The past few months have seen quality stock 'Blue Chips' like GM and GE collapse. I learned my lesson earlier this year and picked up other companies with no debt and a solid business model. LF, ACAT and HOTT are well off of their lows and my purchase prices. Again, no debt. These are three companies whose businesses will rebound quickly in a stronger economic setting. RL and AAPL are also in this category.

My financial play is still PRE, Partnerre Reinsurnace. I like the company, like their strength and like the stock. As financials have cratered due to bad loans and shenanigans galore, PRE continues to be a bedrock/mainstay. Once the financial sector turns, a stock like PRE with such low valuation should rebound nicely.

Finally, call option buying could be a good thing to do in the next few days. The headlines will read "Dow at 2 Year Low" and we'll also continue to read about Iran, Iraq, oil, Obama/McCain, guns, cancer, taxes, economy, etc. Looks like a great time to buy some short-term call options.