Now's The Time to Get Back Into Stocks ...

[Winkelman]

Originally Posted by sheri257

One can only hope.



And you are gutless.

That was the best comeback you could think of?

Been called worse things by better people

You have noooooooooooooo sense of humor, do you?

Anyways, I will give you my non-professional advice since you seem to be having trouble with your investments. I sold some of my short positions today. Tomorrow will being a rally back to 9,000. If you can beg or borrow the money to buy more...

Lighten up, this is not that serious! I am sure in the long run you will get out of the red, just be patient and grow a thicker skin!

[Winkelman]

Above move, the market opened up at 8419 when I said buy. It is now at 8772. I am going to sell today at the end of the day and short again on Friday. It might not make it all the way to 9,000.

[treasurekidd]

I agree - now is the time to buy, especially large, beaten up blue chips, especially the financials. The old saying "Buy Low, Sell High" is the one best rule to live by, and this is the best buying opportunity of my lifetime, hell, since the 1930s. I going to snap up BAC, JPM, WFC, GE and C in my ING Sharebuilder account, as much as I can afford on my income, anyway. All these stocks are big blue chip financial stocks, close to or at long time lows - and all except C pay pretty good dividends to boot. I'm buying BAC right now at $13, and I've got plenty of time for it to turn around and get back close to it's $45 high, even if thats 5-10 years. In the meantime, I'll just collect dividend checks and wait. Good luck!

[Humanoid]

Just a bit ago citi paid a "good divident" on paper too..... Its unlikely any of those stocks are going to have a "good dividend" any time soon.

But have fun with your time at the roulette wheel. Perhaps, you should ask yourself what do you know that everyone on wall-street doesn't?

[treasurekidd]

This has nothing to do with what I know or don't know, other than I know it's good to buy low, which is what I am doing now, and I know it's good to sell high, which I will do later. How much later, who knows? Certainly not me, but I'm not looking to turn a profit this week, this month, this year, maybe not even this decade. I'm in this for when I'm 60, not when I'm 40. And as I said, between now and then, I'll collect my dividend check and smile each time I do.

The only other thing I know is this: the Warren Buffetts of the world are buying right now, and they'll be selling when the market recovers. If he's buying now, why shouldn't I? My second favorite investment quote comes from Mr Buffett himself: "Be fearful when others are greedy, and be greedy when others are fearful". Well, if this is not a fear driven market, I don't know what one could possibly be. I only wish I had more money to snap up these bargains with!! Good luck all!

[Humanoid]

Originally Posted by treasurekidd

This has nothing to do with what I know or don't know, other than I know it's good to buy low, which is what I am doing now, and I know it's good to sell high, which I will do later.

This has everything to do with what you know. If indeed these stocks were such a good buy why aren't investors in mass jumping on them? What do you know that they don't? Why are people selling them?

Yes, buying low and selling high is good. But, you are making a few assumptions here:

1.) You are assuming the companies don't go bankrupt, in which case your common shares will be worth nothing. These stocks are cheap for a reason, bankruptcy risk being one of them.

2.) You are assuming the price you are paying now is a good deal, when in fact these stocks could get much lower.

3.) You are assuming they will return to their highs in a reasonable period of time. One can list stocks all night where this never happened....

In short, you may buy low but never be able to sell high. Inflation will work against you...

Originally Posted by treasurekidd

The only other thing I know is this: the Warren Buffetts of the world are buying right now, and they'll be selling when the market recovers.

People are always buying stocks. The question is which stocks....

Originally Posted by treasurekidd

If he's buying now, why shouldn't I?

Because he knows what he is doing and you don't? Your justification for buying the above mentioned stocks is that they are "low" and you are going to sell high.

Originally Posted by treasurekidd

My second favorite investment quote comes from Mr Buffett himself: "Be fearful when others are greedy, and be greedy when others are fearful".

Yes, people use this quote and commit financial suicide all the time. Warren Buffett doesn't buy stocks because people are fearful, he buys stocks he thinks represent good value.

So, in what way are bank stocks at their current price a good value? Because they are "low" isn't an answer to this question. Nor is talking about past dividends.

[jimmyP]

I would be concerned with financials earning power going forward. We have learned that most of the past performance was based on poor risk management. What is going to drive the earnings in the future? You assume they are "cheap" but that may not be the case. If sub prime was the best idea they had before, what is the next new thing ?

[Global Friend]

Sorry, I have to close the thread. If I were to delete all the arguing and name calling it would be deleting a large portion of the thread so I decided to just close it. For the posters that are name calling, please stop!