Wow - Value Village is here

Not too long ago, my daughter dragged me out with a friend of hers (me being the driver, of course) on an avant-garde shopping trip, which meant, that we had to troll all the cheapie thrift stores - Value Village, Sally-Ann, and so on.

Rather than sit in the car alone, I thought I'd take a look through the store while the two shopping mavens trolled the aisles, I was justly rewarded at the Sally-Ann when I found what appeared to be a brand-new pair of smooth leather Hush Puppies - normally a moderate to expensive shoe. They happened to fit me nicely too.

The price? $4.99. Checking the shoe on-line now at the Hush Puppy store, I think this is a $140 shoe. Brand new. Of course I bought them!

The stock market is like that now - given that I don't intend to draw down my stock account for at least 20 years, things look just great right now. I'm trying to get my hands on every stinking cent I can right now to push into the market.

Is everything rosy right now? No. Are we on the cusp of the Next Great Depression? I don't think that either. Given that, I think about my stock purchase of today - trying to look ten years out. And all I can think is BARGAIN, BARGAIN, BARGAIN

Don't think so? How about Chevron (CVX) at a 6.2 PE ratio and a 4.2% yield. How's that purchase going to look in ten years? How about Microsoft at 11.6 PE and 2.4% yield - wow, a meaningful yield from the most dominant software company in the world. Ten years out shouldn't this purchase look good too?

How about one of the drug makers - Glaxo Smith Kline (GSK), at a 12.5 PE and 6% yield? Is the pharmaceutical world falling apart? I don't think so, and that's why I own some.

How about Kinder Morgan Energy Partners (KM) - they supply oil and gas through their pipeline systems. Are people going to stop heating their houses? Yet it sports a 11.8P E and an 8.1% yield. How would that purchase look ten years out?

And how about some of the emerging market vehicles - I own one of the Wisdom Tree ETFs, the WisdomTree Emerging Markets SmallCap Dividend Fund (DGS). It sports a PE of just 5.8 on the index, and the fund itself traded yesterday at an 18% discount its NAV, meaning the effective PE is below 5. It also has a dividend yield of 8.6%, and the long term growth rate of the net income growth is estimated at 13% per annum. Let's see, an effective PE of under 5, and a growth rate of 13%?

BARGAIN, BARGAIN, BARGAIN!

Now where in the heck can I get my hands on more cash?

Disclosure: Long GSK, DGS.


JW