Financial Stocks – Another Sign We’re On The Right Track…

| October 5, 2009 | 0 Comments

We were so close to reaching the psychologically important 10,000 level on the Dow.  Now in just a few days, we’ve pulled way back.  I can hear the talking heads all asking the same question… “Is this the start of the next leg down?”

How quickly they forget the poor state we were in just a few months back.

Earlier this year, we were looking over the cliff at total economic collapse… A scary thought but thankfully one we’ve put in the rear-view mirror.

I’m always looking for signs the economy is recovering.  Every time we identify another positive trend, it supports the idea times are improving.  It also shows us where to invest.  And that helps us make the big bucks!

Finding positive trends in the economy sounds simple enough.  But sometimes these little hints are hidden from view.  Anyone can listen to Ben Bernanke and the Federal Reserve.  You can take the Fed’s economic analysis at face value.  You can believe everything they say.

The problem is you become one of the sheep.  (Remember… sheep get slaughtered.)

Why focus on the economic data the Fed’s spoon feeding you?

I prefer to independently verify economic assumptions.  I do that by looking at third party sources of information.  And, you should too.  Do your own research and see for yourself if the economy’s really recovering.

Lucky for you, I’ve already done some of that legwork.

I uncovered a little company with strong ties to the economy.  What they’re telling us about the economy is more important than the endless drivel from the Fed.

And, they’re telling us the economy’s improving.

How do they know?

It’s their business to know.  This company specializes in making loans and providing financing to small and medium sized businesses.  A lot of their business is financing the purchase of new and used equipment.  They finance things like bulldozers, cement mixers, concrete pumps, earthmovers, pavers, recycling equipment, sanitation trucks, truck tractors, and trailers.

While business suffered in 2009 because of the recession, business is now looking up.

CEO Paul Sinsheimer recently said, “We are positioned to benefit from improving business conditions and are encouraged by recent indications of economic improvement.”

Straight from the horse’s mouth!

They’re seeing an increase in business activity.  And management’s expecting 2010 to be better than 2009.

Let’s think about this for a moment.

We know for the US to escape the recession, small businesses need to grow.  Here’s a company that focuses on lending to small businesses. Small businesses are starting to borrow again.

This is how economic growth starts… And we’re seeing it now.

Management expects loan levels to increase and they see their business growing.  It’s a great sign for the economy and for this business.  What company am I talking about?  Financial Federal Corp (FIF).

The stock’s up significantly from the lows.  Management isn’t the only one seeing bright things ahead for the business.  Investors are seeing it as well.

By doing a bit of research, we’re able to uncover an early indicator of economic strength.  I plan on watching the performance of FIF not only as a stock, but also as a company.  The better they do, the better our economy will do… and that bodes well for everyone.

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Category: Stocks

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The Dynamic Wealth Report works with a number of staff writers and guest experts who specialize in everything from penny stocks to ETFs to options trading. These guest analysts post under the 'staff writer' moniker for ease of use.

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