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Time to buy stocks: Markets are due for strong rebound?
I think so. Do you think so?nnI think this is the time to buy stocks globally. Markets are oversold now.nnFactors to watch:nnLower interest rate worldwidenGlobal actionsnGradual improvement in the liquiditynLower oil and commodity prices.nCooperate balance sheets will improve in the next 02 quartes in some sectors.nFinal three quartes of next year will be more positive than current yearnThe Fed has injected massive amounts of liquidity. Other countries also following now.
Answers
278 points
ThaDRAGN answered one year ago …
I think you might see a bear market bounce today but there's no way this market is going to have any type of sustained rebound -- the economics just don't work in its favor. Credit markets are going to remain tight for a while and the employment picture is deteriorating by the day.
That means corporations AND consumers are going to stop spending.
It's going to take a long time to come back from that.
115 points
SamCollins answered one year ago …
As I said in my Daily Market Outlook today, I think we'll soon even see a final bear market low, but that can only happen when investor confidence has been completely destroyed.
Considering the Dow 30 blue-chip index -- which can boast some of the largest and most widely-held public companies in the world -- is off 35% from its high, and it's clearly time to go shopping for the best of the best because if not now, when?
474 points
spider348 answered one year ago …
Personally I prefer to see if these 5-7 years lows we are at will hold and become a longer term support level before I 'overnight' anything. If you chart major indexes and stocks in many sectors, everything seems to be at mercy of the news and markets. In other words I do not see much relative strength. Everything seems to be bouncing along this 'low' we are at. Next 2 weeks we have a slew of economic announcements. Any one of those could hit a nerve and trigger the all the markets lower (maybe DOW at 7,000?) which is the tide that sinks all ships.
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368 points
ads answered one year ago …
I tend to agree with Sam above, the markets are closing in on a bottom, although my guess is it will be at least another month before they get there (but could easily be another 18 months if the "average joe" investor continues to panic and pull funds). As Sam says, the bottom will occur when the average investors confidence is at its absolute low, and I suspect it is approaching that point within the next few months. But personally I'm pouring what I can spare (I'm a firm believer in the "only invest what you can afford to loose" addage) into the markets right now, even though there may still be some downward momentum for a while yet.
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102 points
shafferkr answered one year ago …
Many past stock market "corrections" that produced relatively short recessions during the Great Bull Market have had a notch-like characteristic, providing buying opportunities for the adroit stock picker. The difference here is that this is a Great Bear Market leading into a depression, which makes bottom-picking a very hazardous game. There will be no quick rebound out of this. The bottoming process will be an extended pan shape, like when a stock gets smashed and the price takes years to recover. Look how long it took to get out of the depression of the 1930's. Look at how long it took Japan to recover from the same kind of real estate implosion over a decade ago. Only recently has their stock market shown some life, but that was mainly due to spill-over from the exesses here, which set it up for another dive. What money there is out there will only come trickling in over a long period of time. With 40 trillion dollars evaporated and the ability to leverage also gone, it will take a long time for the stock markets to return to their former heights. Also, in the 1930's the population was younger, the US government wasn't 10 trillion dollars in debt, and the country was't burdened by the socialist burden of "entitlements". On the other hand, if we could convince 10 million wealthy foreigners to come buy up the excess real estate as vacation homes, maybe we could jump-start the recovery!
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4085 points
EthanR answered one year ago …
I'm not sure that we will have a depression, but one factor which could keep us in a long bear market is the baby boomer reaching age 60. If the boomers begin to panic and start taking money out of the stock market, that could have a profound effect upon keeping prices down.
Read more from EthanR678 points
BoxCar answered one year ago …
It is a historical fact that every 3 generations (75yrs) socio-economic upheaval occurs
Past dates were 1860s,1930s and about 2005 when real estate mkts flattened. This
warns us that we in for a roller coaster ride like none we have ever seen and it will be
called 2nd Great Depression just as The Great War became WWI when WWII came
History DOES repeat itself, nevermind the details, whos to blame and why, wherefore
Sorry about that, but we are in for a roller coaster ride like NONE we've ever seen
Mother of all Head N' Shoulders could be developing wherin the Dow winds its way
back to the 1000 level of the 1960s what with all the 50s baby boomers beginning
to retire and draw down on pension funds & Soc. Sec. In short, it don' look good.
