Good Morning All, This question has been lingering in my head now for a while and thought I might get some input from people who know a thing or two more than I do. Is the time right to buy stocks? I have heard buy low sell high and all that, but is it safe right now. It was just last month that everyone was saying "Oh, the market can't get any lower, buy buy buy!", and here we are 500 points down. What's everyone else's take on this?
It just like a trip to Vegas. If you cannot afford to lose then stay out of the game.
I'm tired of watching my life savings dissipate and am considering pulling away from stocks until I see a good six month increase in the market. I'll miss buying at the bottom, but I will have preserved what capital I have to invest at a later date.
Ex_CG_GM if you are not going to buy now, don't wait six months when the stock is more valuable and buy then...that's the opposite way to invest.
The golden rule...and it stands always...in bull markets or in bear is
"Buy low and Sell high"
Nothing else makes any sense. Yes...the market may sink even lower and your stock values along with it. But it's also true that no one ever lost a dime who wasn't wanting to lose money. They panic'd and sold at a loss. If you stick it out, eventually stock will invariably come back up - higher than it was before. A mutual fund investing in a wide variety of stocks is the best way to mitigate declining value. Trying to time a market is a recipe for disaster. Even the pundits fail when they try to "crystal ball" the stock market. The only way to win is long term, steady investing and no pulling out when the market is low. Continue to purchase through the lows, because that's where the greatest gains are to be found. End of lecture.
Yes, they are low, but how long will it be before you can sell for a gain? I truly believe this will turn around, but will it be in 5 or 10 years, or more? My take is that I never invest $ that I can't afford loosing or having to wait to recoup. If you are, then you should not be investing. Talk to a professional financial advisor.
But if you still want to invest and can wait and see, check Ford. I say when it is all done and over, this will be the only of the Big 3 still alive and perhaps doing well. Remember, as of now, they are the only one not to borrow any of the government bailout funds.
