Why should anyone buy stocks now?

[godoftrading]

I see no good reason to buy stocks at these levels at this time. The market rarely gives people an easy way out. What idiot would buy the market when Dow is at 12,800, S&P at 1400? Overhead resistance is immense.

I don't see any let up till you test the lows and give people false hope that there was a successful retest. That false hope and rally should last maybe 2 days and then more selling. It is going to be relentless. Remember 2001, this is almost a repeat.

[FGGFernando]

I see no good reason to buy stocks at these levels at this time. The market rarely gives people an easy way out. What idiot would buy the market when Dow is at 12,800, S&P at 1400? Overhead resistance is immense.

I don't see any let up till you test the lows and give people false hope that there was a successful retest. That false hope and rally should last maybe 2 days and then more selling. It is going to be relentless. Remember 2001, this is almost a repeat.

I disagree....I believe, where ever there is recession, there is progression, you just gotta know where to look. :bandit:

[Lou]

Are you short the whole market?

[johnnyLite]

Not sure why it would be a horrible time, just because the indexes are moving lower, not every sector is doing horrible. There are some good bargains, and sectors that are moving upwards.

[piggybank]

Meh, not all company's react significantly to this recession. For ex. there's a little wind farm company i have a position in that in relative terms hardly felt anything from this whole crisis. It's just so small but rocksolid that that there was hardly anyone with a position in it who would sell it at a lower price that it's usual sidewaysgoing low was. Just waiting for it's yearly results, they already announced higher expectations recently to.

For me though wind farms are one of those investments that are hard to loose with, atleast here in europe. They just put some windmills, earn some, put some more windmills, earn some more, put even more, etc. They can continue that until world demand for electricity is saturated .... could be a heck of a loong time.

And some thing's are just to low to be realistic. Though i am yet to see the first share that is actually trading below it's EPS (that would be fun, especially with a nice divident) it's not hard to see that the low PE's of certain company's combined with a firm divident put them squarly in the oversold territory.

But in general, there are just so many sector's that act differently in such times that it's impossible to exclude every sector as a possible gainer in the short term. Some stock's actually go up in recession to.

[microhedge]

To godoftrading: to not play this market and take advantage of bounces in various sectors like Chinese, Solar and Financials is a fools lot.

To piggybank: ... and the ticker of this little wind farm gem is? Or is that a european secret?:proud:

[chinaman711]

Everyday there is a stock to buy and sometimes you get lucky like today and everyday there is a stock to sell.

[piggybank]

Im not sure youre going to find it on all stock sites. the company is called "Air energy" and it's a brussels euronext stock. (B9J)

Ive been trading the stock between 19 ish and 21 ish for quite a while now. It hardly felt anything of the dip and now is just back to it's usual low. In relative terms it's quite stable.

[microhedge]

Everyday there is a stock to buy and sometimes you get lucky like today and everyday there is a stock to sell.

AMEN.

Thanks for the info piggybank :top:

[aiki14]

If your not looking to retire in the next couple years, this is exactly the time to buy stocks. If you're a trader, we are in a period of astonishing volatility, which is a veritable cash machine.
What could be better than that?

[piggybank]

Wind in general is bouncing back quite fast and showing great strenghts of stabilety. Atleast here in Europe. Ceckout Vestas wind systems for ex. (vws) ,world largest wind turbine manufaturer, based in Denmark. It's not that the januari dip didn't puch a little gap in their chart, but it was filled up quite as easily to, almost went back to it's 52 high. Had good quarterly results, beyond expactations.

Currently i am thinking of buying into the 2nd and 3rd largest wind manufacturers before quarterly results atm, respectivly Gamesa technologica and Nordex AG, in the thought that increased sales for Vestas, beyond expectations, might signal overdemand in that sector. Their stock price is still in the lowered sector after the dip.

[netwrangler]

If your not looking to retire in the next couple years, this is exactly the time to buy stocks. If you're a trader, we are in a period of astonishing volatility, which is a veritable cash machine.
What could be better than that?Good summary of the current market, Aiki.

From my view, it is, indeed, an E-ticket ride.
I'd just like to add one thing — for those who are looking to retire in the next couple of years:
The problem is, if you get all set up in CD's and dividend plays, you might not die soon enough.
A person signing up for Medicare this year might easily live until 2028, or more.

At a 2.5% inflation rate, cash [and the income it generates] declines over 20-years to 60% of what you have today.
Near as I can tell, 20-years is a long-term investment horizon.
If a person aged 65 can have 20-years to live, that person has a long-term investment horizon.

So, at retirement, you need to move assets toward cash to assure the year-to-year income.
But you still want to have some assets that are growing for you so that year-to-year income adjusts to meet inflation.
This is not to fault Aiki's comment, which is a propos the topic.
This is to suggest that there is more to managing the nest-egg in retirement than just cashing up.

[reef]

I wish I had the expendable cash to invest in a few companies right now. Im kicking myself hard that Im not in a better position to do so right now.

The best I can do right now is keep paying attention to the market and keep learning from everyone. :top:

[wallstreetsedge]

I wish I had the expendable cash to invest in a few companies right now. Im kicking myself hard that Im not in a better position to do so right now.

The best I can do right now is keep paying attention to the market and keep learning from everyone. :top:

lol same here...

ive been making a couple of stupid moves the past 2 trading sessions causing me to miss out a lot.

[netwrangler]

See the Chinaman's advice in the chat room earlier this year...

You were there.
He said to cash up.

My goodness but he was right.

[pa-sale]

I wish I had the expendable cash to invest in a few companies right now. Im kicking myself hard that Im not in a better position to do so right now.

The best I can do right now is keep paying attention to the market and keep learning from everyone. :top:

Gotta love being 60% cash... love picking up some stocks on a discount.

[piggybank]

I liquidized some stock before and during the dip, all on profit. I have roughly now 1/3 in stock (and all below bought price at that, average -20%, quite a large segment solar) while having 2/3's in liquidity, wich i have reinvested for a part yesterday. Whereas before the dip i had 2/3's stock and 1/3 liquidity. Never put all youre money in the market at the same time in qomewhat unstable times, and after august there was reason for me to keep permanent liquids.

But net loss is not insignificant here, a fairly large portfollio. So it still hurts, but with 2/3 liquidity and low buy oppurtunity's i should be able to alleviate and even gain at this low, providing the market and my picks remain strong and regain in time.

[Horsefish]

:dancing2: Best single month I have ever had. Buy the dips, sell the rallys. Just don't use more than 40% of your settled funds so that you can sell on a moments notice. Or get a margin account. Also buy the ultra short ETF's on rally highs, sell on dips. Then buy ultra tracking ETF's, sell on rallys. CASH MACHINES. :beer: