The article attached here is TRUE. However, I place this article here with caution. When everyone says that it is IMPOSSIBLE to time the bottom, I actually am the one who came in on 3/9/2009 and bought the heck out of stock in the market, telling my cohorts that this WAS “a” bottom. I have made an 870% since my initial investments in October after pulling my funds out of equities in the Fall of 2007 and placing them into cash until the Fall of 2008. I have only made gains since.
And at the same time that some of my investments have brought thousands of percents return, ie: PIR (bought at 11 cents), I still do not feel that this bottom is over.
I am only saying for everyone to understand that this market is likely going to keep bouncing around on bottoms until the market fully corrects. Before becoming bullish on stock and quitting your day job to be a day-trader, consider the following:
1 – We still have not seen the end of the massive amount of houses going into foreclosure.
2 – We have not seen an end to credit card write-offs.
3 – We have not seen an end to war, (especially wars that are over countries with nuclear capabilities).
4 – We have not seen an end to H1N1
5 – We have not seen an end to the drop in corporate real estate values, and in all actuality, they will likely bottom in the Fall, (my gut feeling again).
6 – And we NEVER know what is going to happen during the summer with hurricanes and natural disasters.
With that said, I would highly encourage everyone to be careful with your investments and be sure to set your “stop-losses.” Make sure that you sell at the right time. NEVER get too attached to a stock that you cannot sell it after a sufficient gain and repurchase it at a later date. Make good buys on companies with less debt and great revenue. Be careful with companies that are hurt by specific recession related events and news. And lastly, be aware that it’s better to admit you are wrong and move quickly than try to prove you are right over the next 50 years.
Be a long-term investor and BE SURE to get quality stock, most of the time with a dividend.
So, be careful
pd
*By the way, I am 100% invested in stock and have my “stop-loss” sell prices set. So, I am not telling things I don’t already do.
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President Barack Obama is proving to be a better judge of the stock market than Warren Buffett, the world’s second-richest person.
The CHART OF THE DAY shows the Standard & Poor’s 500 Index began its biggest rally since the 1930s after Obama said on March 3 that equities offered bargains for investors with a “long-term perspective.” While the measure fell 3.5 percent over the next week, reaching a 12-year low on March 9, it went on to surge as much as 37 percent.
Buffett, the chairman of Berkshire Hathaway Inc., wrote a column titled “Buy American. I Am.” for the New York Times in October, saying he may put all of his personal investments into U.S. stocks. The S&P 500 then plunged 29 percent through March 9 and is still down 3.9 percent. Berkshire, based in Omaha, Nebraska, posted its largest loss in at least two decades on May 8, in part because of Buffett’s “major mistake” of buying ConocoPhillips shares before oil retreated from a record.
“It’s been impossible to time the bottom,” said William Stone, chief investment strategist at PNC Financial Services Group Inc.’s wealth management unit, which oversees $96 billion in Philadelphia. Obama “deserves some credit for his administration putting some of the policies in place that helped us snap that lack of confidence.”
Stocks rebounded as Obama outlined a $787 billion package of spending and tax cuts to stimulate growth, the Treasury unveiled plans to finance as much as $1 trillion in purchases of banks’ distressed assets and the Federal Reserve pledged to buy more than $1 trillion of Treasuries and bonds backed by mortgages to drive down interest rates.
Obama also had better timing than Laszlo Birinyi and Barton Biggs. Birinyi, a pioneer of money-flow analysis, said on Dec. 8 that the U.S. stock market bottomed in November, before the S&P 500 lost another 26 percent. Biggs, the former Morgan Stanley strategist who runs the hedge fund Traxis Partners LLC, told Bloomberg Television on Nov. 6 that stocks hit their lows in October. His call preceded a 29 percent drop in the index.
Home Prices Fall 14% in Record Decline
I actually just finished this post and directly after, this report came out on home prices dropping and at the very same time, the DOW dropped. Now, this sort of illustrates the point I am making.
I just don’t see us making a clear “V” recovery. It is likely going to look like a long “U” or “W” with tons of little bumps along the way.
I am not a doomsday guy though, so I am still investing throughout this process. I am just saying, to not be overconfident, greedy and/or cocky!
pd
Another Support for the point