| |
Time to Buy
After
each major market decline over the past 70 years it has taken
a shorter and shorter period of time for the market to recoup
its losses and go higher. The last two market corrections
(fall 1998 and fall 1999), have taken less than 90 days for
the market to recoup their losses and go higher.
What did the people who missed the
January/February rally say to themselves? "I'm going
to jump in when the market goes down and stocks are more reasonably
priced. I'm not going to miss the next rally!!"
Well, guess what? Here's your opportunity. Investors
were buying stocks when the market was at 5,000. They were
buying when the market was 4,500 and when it was at 4,000.
If they were buying stocks when the market was at 4,000 and
5,000, why wouldn't they be buying stocks now when the market
is at 3,000? Who's going to make more money, the guy that
bought stocks at 5,000 or the guy who's buying now at 3,000?
EXACTLY!!!! After this market rebounds, you may have to wait
months or possibly years for the market to correct itself
significantly enough to buy stock around these levels again.
There are investors out there who wish they could have bought
after the 1987 crash, the 1994 crash, and the 1998 and 1999
corrections. Six months from now, investors are going to wish
they bought after the April/May sell-off of 2000.
We've had five ¼ point interest
rate hikes over the past 9 months. We just had a ½
point rate hike and we feel that the FED will finish this
series of interest rate hikes in June with another ¼
or ½ point rate hike. After that we expect a summer
rally because the FED won't meet again until August. Right
now we're at the tail end of a correction. There is currently
2 Trillion dollars sitting on the sidelines waiting to re-enter
the market. When these funds do re-enter the market I'd
rather be invested one week too soon rather than a week too
late.
|
