Do you think we've finally turned a corner or is this just another "head fake"?
Answers
368 points
ads answered 9 months ago …
Personally I suspect there is still a modest amount of downward movement to be seen, although I suspect that the strong companies that have been drug down with the not so strong due to the panic (the babies thrown out with the bathwater) will start to see some improved movement in value over the next few months. There are a lot of great buys out there, if you are willing to do some serious searching and research to ensure that what you choose is strong enough to come out of the next year in good shape, and the discipline to stick to your guns then there are some good opportunities available. However, I don't think that the economy as a whole will start to improve until late in 2009 (maybe even early 2010), so be very cautious. But on that same note, stock prices tend to be anticipatory, and thus the strong companies start to see buying and an upward swing in their market value prior to the economic turn around actually starting.
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3963 points
MNSL answered 9 months ago …
There will be more volatility in the market together with surprises in the global market time to time.
I think there will be free fall in some assets. Still they are overexpansive and over valued.
However there are some great buying opportunities in the market now. These companies have less debt in their balance sheet. They will always have demand for their products. They do not want to depend on export markets. These are the companies that going to recover fast before others. Some companies in next rotating sectors, neglected sectors and simple businesses will have profit continuously in the next 05 years. It is wise to buy these companies before they announce strong profit during next 09 months.
However some hot sectors should sell now. Because they will not recover in the next 05 years.
4085 points
EthanR answered 9 months ago …
Dave, I personally do not believe we have turned the corner yet. I would suggest reading William O'Neil's book, "How To Make Money In Stocks", specifically pages 55-56 deal with how to spot a market bottom. His take is a little too long to paraphrase here. Here is another link that has an interesting take on how to spot a market bottom:
http://www.thedigeratilife.com/blog/index.php/2008/11/07/10-signs-of-a-sto ck-market-bottom/
