Tufar on Finance and Economy

1. Industrials and discretionary were the winners but also CNBC people said that they had most short interest. So this performance should be mostly due to short covering.

2. This recent Jan-Feb correction lasted exactly the same as the correction in July: 18 trading sessions and 9.1%.

Nice article: http://moneycentral.msn.com/content/Investing/Findhotstocks/P90537.asp

Main takeouts, the companies you invest in should have or surpass the following benchmarks:

• ROE: 5-year Avg. >= 17%
• Return on Invested Capital: 5-year Avg. >= 17%
• Pre-tax profit Margin: 5-year Avg. >= 1.2* Industry Avg. Pretax Margin: 5-year Avg.
• Price/cash flow ratio <= 0.8* Industry Average price/cash flow ratio
• Price/cash flow ratio >=0.1
• Debt to Equity Ratio <= 0.8*Industry Average Debt to Equity Ratio