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When to Buy
The
markets are down.� The
economy is slowing.�
Japan is rocky.�
There is a lot of uncertainty in the air.�
But the good news is every down market is a superb
opportunity to buy �em low so you can sell �em high.�
Are you wondering when should you add to the long-term
part of your portfolio?�
Maybe you haven�t pondered the maxim �Buy Low, Sell
High� for a full afternoon, but let�s think about it a little.
��If
you buy stocks when they are only medium to high priced and
sell them when they are high you only made a little money.�
�
It�s
when you buy stock when they are filthy ugly and sell them
when they are high that you make a fortune.�
Granted, it is VERY uncomfortable buying stocks when
they and everything around them are dark and gloomy.�
They say it�s darkest before the dawn.�
When the doomsayers are crying the loudest is when
you should buy stocks.� When stocks look incredibly cheap and yet no one wants them
is when they are a real steal.�
When there is panic in the air is when you buy stocks.�
When everyone says any little surge in prices is just
a bear trap is when you buy stocks.
These
markets have provided great opportunities for the short-term
trader.� The ride
may only last a couple of days, but you can ride them up and
short them on the downside.�
The big question is how do you time a re-entry back into
the markets for your longer-term funds.�
For the conservative investor who wants to earn a conservative
return, you wait for it to be obvious to everyone that the bottom
is behind us and the market has begun to move higher.�
For the more astute investor that wants to earn a great
return you need to put your long-term money into the market
before everyone is getting in.�
Get in before everyone else and you let others drive
up the price of your shares.�
When everyone bar none is buying stocks and feels the
need to catch the current upswing, you�d better head for the
exits.� Watch for
shifts in asset allocation from the major firms.�
When these changes hit the media they will get a lot
of attention.� Even
a recommended five percent change in equities will start ushering
buyers into the markets.� When the number of stocks hitting new lows starts declining
and the number of new highs increases that is a signal the markets
are regaining some strength.�
Most companies have warned of lower earnings and weaker
sales going forward.� The
good news is, if they have been dead honest on their estimates
we should see positive earnings growth in the future when compared
to the current dismal quarters.�
The Fed is working to get interest rates lower and the
economy is trying to come back from the Intensive Care Unit.�
The stock markets usually catch their breath six months
before the economy picks up.�
The market is an early indicator of an economic recovery.�
By the time things start looking better the parade will
have passed you by.� |
