Tweet
For those of us who have been around the horn, we've seen all of this before. Here's what I focus on:
1. Every day there are hundreds of stocks setting new highs, no matter what happens in the overall market. So you can make money going long, even if the market is going against you.
2. Having said that, stock price increases may not be sustainable in this kind of market and opportunities will be fewer, obviously, than they would in more robust markets.
3. Even the Bernanke is trying to wreck the stock market, he cannot wreck the economy. Risk of inflation is nil. As long as people are employed, they will continue to consume. As long as people consume, companies will be profitable.
4. As long as these companies are profitable, they will become better and better investments and their stock prices will be more and more attractive if they are not already increasing.
5. When the market does decide, once again, to turn positive (and it will) there will be many many many opportunities to score big.
So the bottom line is, fools rush in. Don't invest merely because you have an itchy trigger finger.
I limit myself to 14 stocks of companies that continue to be profitable. When their stocks appreciate and reach my target, it's a signal to me that there will be fair weather ahead. I don't mind being late to the party, as long as the party goes all night long.
1. Every day there are hundreds of stocks setting new highs, no matter what happens in the overall market. So you can make money going long, even if the market is going against you.
2. Having said that, stock price increases may not be sustainable in this kind of market and opportunities will be fewer, obviously, than they would in more robust markets.
3. Even the Bernanke is trying to wreck the stock market, he cannot wreck the economy. Risk of inflation is nil. As long as people are employed, they will continue to consume. As long as people consume, companies will be profitable.
4. As long as these companies are profitable, they will become better and better investments and their stock prices will be more and more attractive if they are not already increasing.
5. When the market does decide, once again, to turn positive (and it will) there will be many many many opportunities to score big.
So the bottom line is, fools rush in. Don't invest merely because you have an itchy trigger finger.
I limit myself to 14 stocks of companies that continue to be profitable. When their stocks appreciate and reach my target, it's a signal to me that there will be fair weather ahead. I don't mind being late to the party, as long as the party goes all night long.
Comment