Finding Good Investments in Turmoil

by | Aug 9, 2002 | Archives

Recent messages have looked at ways to find good investments even while markets tank. Here are so more ideas that can help.

During recessions and depressions, nostalgia is a powerful seller as we saw in a recent message that looked at shares in Harley Davidson the motorcycle manufacturer.

That article urged you to look for companies that are using nostalgia to sell and by following my own advice I stumbled across Dean Foods. Here is why this share looks attractive to me.

First Dean Foods runs Morningstar which produces a great brand of meat like-soy products. They produce a great soy breakfast sausage, bacon and burgers. Merri and I consume a lot and I have been impressed by the growing number of places where the Morningstar brand appears.

I believe Americans are becoming increasingly health conscious and will continue to eat less meat and consume more soy.

Here on the farm we can still enjoy hot dog cookouts, hamburgers cooked over the grill and we love spaghetti squash with Italian sausage and green peppers stuffed with bratwurst. Yet it's all soy, mostly products from Morningstar.

In addition I recently spotted Dean Foods successfully using nostalgia to sell. One of Morningstar's products is Norman Rockwell Ice Cream Mix. What can be more nostalgic than Norman Rockwell and homemade ice cream! You can learn more about Dean food shares at The New York stock exchange share code is DF or use a search engine (I used and type in Dean foods.

Another company using nostalgia to sell right now is Coca Cola. One ad they are running now features a Coca Cola song in a Jan & Dean style played to the tune of “Big Girls Don't Cry”.

Another way to cash in on nostalgia when the stock market crumbles is to invest in collectibles. For example the Money section cover story in USA Today on August 6 is titled “Collector cars flex muscle versus markets”. The subtitle reads “Rekindled nostalgia fuels red-hot sales as stocks plummet.” The article points out that classic car markets are on fire fueled by muscle cars from the 60s and 70s. Recently a Chevelle convertible with a 454 engine and four speed manual transmission sold for $172,800. A Plymouth Roadrunner for $135,000 and a 67 Corvette for $151,200. The list goes on.

Collectibles generally do well at the same time that commodities and precious metals rise. A message last week indicated why this could be a good time for silver and gold. Collectibles that have done well in the past include coins, stamps, sports cards and such. The key here though is to remember that a bubble will appear. Keys to success in investing in collectibles is to know what you are doing and to be buying now so you can sell when the bubble really heats up.

Whether you are a large investor or small, the current bad times can affect you. This effect can be good or bad, but one way to make it better is to look back to see the future. I hope to meet you at one of our upcoming seminars. Until then, good investing!