profitable

Question from a reader:  “The market has been up the last few days, I think it is a great time to get in and we are out of the woods.  How come you aren’t telling people to invest more.”

My answer is I don’t think we are out of the woods, if you think it is a great time to get bargains, go for it, and people should invest in themselves.  Three days do not a turn around make.  We won’t know when the market recovered until years from now and even then we may not be able to piece together when that happened.  Pundits have been trying to identify recovery and cause points for the depression/recession/inflation times of the 1970s, 80s and recent 2000s.  It isn’t clear even in hindsight.

The stock market may need to test some more lows and we may be in for a lot of volatility for years to come.  People are planning their portfolios as if they are day traders.  That isn’t the way to look at things, especially with bread and egg money or unless you are a good day trader.

Because of the holidays and the hearings for the automotive industry there might be a brief holiday pop over the next month and one would hope into the Inauguration in the next month.  My own concern is once the honeymoon period and the holidays are over, it will be some time until money gets into the system so that people like you and me can use it and benefit with it.

We will need more jobs created in this country and hopefully a lot of them will be in manufacturing since service appears to be slow if not dead.

So, to get back to your original question, I don’t think that we are out of the financial woods yet and it may be some time until we actually are.  If you like the stocks that you are buying, by all means, buy them if you have done your research and due diligence, etc.  Just don’t be shocked (you shouldn’t be anyways) if the stock still goes down.   I don’t want you losing your shirt.

 

 

Ironically, if everyone is predicting doom and gloom, pundits including Warren Buffet say that is the time to buy.  Remember though he can also get deals that you and I can’t on bulk acquisition of stock.  It will be interesting to see how President Elect Obama’s financial team get on the business of helping us repair our economy.

In the meantime, use your judgment in buying and selling securities.

Think of things now like any shopping you did on Black Friday.  There are some great deals and some not-so-great deals just to dump product.  Just because something looks inexpensive doesn’t mean that it is a bargain anymore than it looks like it is cheap.   

 Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement 

Kim Isaac

Kim Isaac Greenblatt

 

We aren’t out of the financial woods yet.

Tags: stock market

This entry was posted on Friday, November 28th, 2008 at 12:09 am and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.