Share thoughts for Feb 2009

When I last looked the FTSE and other shares were back down to just 3922! With bad news every day, most shares have been hammered. However with interest rates offering derisory rates of interest, and property looking uncertain throughout 2009, we need to consider if we want to risk any 'spare' money we have in a gamble or not. I genuinely think the market will recover in a few years time and I think the FTSE will reach new highs by around 2014/15.
Let's not forget that with so many people being pensioners by 2030 ther state pension is unlikely to be generous and will probably be means tested. We have to seize the innitiative now to reap the reward in 20 years!

So is there any shares that we can invest in?
If I had the answer I would be very happy, but having had a disastorous 2 years, there's no way of knowing for sure.
I thought Lloyds Banking Group looked cheap at 130p, in November, but was wrong. ITV seemed a bargain at 72p in January 2008, at the time. In March 2008 Woolworths Group were just 10.6p, there was no way of knowing they would go into administration at 1.2p!

So the shares, I think are worth holding in these turbulent times, but also a little bit 'safe' are:

• William Hill - the rise in internet gaming has contributed to the company's success and is likely to continue for at least 5 more years - these digital operations are better positioned than their larger rival Ladbrokes. At 200p they are good value. Even if I'm wrong they are well run and building up cash reserves for mergers and acquisitions.
• Also BAE Systems had pre-tax profits (also this week) for the full year at £2.37bn, up 91% from £1.24bn in 2007. Sales of £18.54bn were up 18% on the previous year, while orders rose 20%. The results were boosted by £238m from the sale of a number of businesses.
• This government keeps hinting about printing more bank notes, so hopefully De La Rue will benefit.
• The water utility shares, should hold up well over 2009 despite fears of the global meltdown, there is uncertainty over OFWAT's pricing regime for 2010 and beyond, my favoured company is United Utilities.
• Finally the supermarkets, I think Sainbury's will continue to prosper as they are affordable but also are perceived to be a premium brand. Let's not forget they have substantial property in the South East for property development.
  

Remember as 2008 has shown, shares and other financial assets can go up and down at frightening speed. Don't buy any, unless you know what you are doing and can afford to lose the money.