after this recent news on wall street, is it smart to take advantage of cheap stocks?
January 18th, 2010 by admin
im almost tempted to grab all of these good stocks cheap. im a new investor and i have been planning to start investing for over a year now. so is right now a good time?
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Not while the market is still on the slide down, wait until it bottoms out. You will know by the non movement, or slight but slow upturn.
Yes, stocks are cyclical, so since we are on the down-turn now, there is really no where to go but up. Just be careful and do your homework. make sure the stock has bottomed out and then buy. make sure there is good backing for the particular company and it has a sound future.
It is almost impossible to tell when the market will bottom out. My suggestion is that you invest in several different Index funds. They will move up when the market moves up, but does not have as much risk as investing in particular stocks. If you are willing to take on the risk, now might be a good time to buy stocks, but as I said earlier, it is almost impossible to predict when the market bottoms out.
Buying cheap stocks is easy, buying cheap stocks that will
survive is more difficult.
It was good that you had the patience to wait for over a year
and see the first dominoes to fall.
Maybe you will have the patience to wait for one or two more
years, waiting for all the other doomed dominoes to fall so as
to buy those which will remain standing.
Good game :-)
.