It’s the good time to buy, no?
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{ 3 comments… read them below or add one }
It’s a great time to buy and average down when needed. Buy a great company, with a buyback program, decent dividend, and competitive pe and you should do well over time. I think we’ll get back above 10k on the dow in 2 years.
i think people are sheep, the recession is only happening because the experts tell everybody it is and they are just regurjitating garbage soebody else told them…my husband invested 500+ bucks into a utual fund 2 weeks later it was down to 200 because everybody paniced and pulled out. now it’s back up to 500. try a book called “the wealthy barber.” it’s got a lot of good theories…they say when things are low that’s when to buy, that’s how you make money, are you really looking long term or short term, the book will help with all your questions
I have already bought back into the market, but am still a bit conservative. Many people believe the market will rebound in the second half of 2009.
With the exception of the occasional tremor, such as monthly unemployment figures, the markets aren’t currently moving down, but rather sideways, pending on the outcome of General Motors and Chrysler.
These two companies would have already filed for chapter 11 bankruptcy had Bush not nurtured them with some of that sweet bail out money. They have until sometime in March 2009 to present their survival plans to congress otherwise they will be forced to go bankrupt. General Motors is listed on the Dow Jones Industrial Avg.
On a positive note for auto makers there is speculation on the development electric cars. Ford, General Motors and Toyota are all in the race to put the first electric cars on the road. This could be what saves GM if they don’t go broke.
The market took a huge drop in October 2008, so some commentators have been suggesting that negative events after that have already been factored into the market.
Unemployment is the major driving force of this reccession. The increase in unemployment was much higher in the second half of 2008. Although it was encouraging to see the US December figures for job losses were less then November. With exception of the possible event of a US automaker going bankrupt in March, I think the monthly increases of unemployment will decline because major companies (such as Citigroup) have, or will have, already announced their job cuts to the market.
Interest rates are near zero in the US and declining in other parts of the world which is good for people with mortgages. The cost of oil has dropped which is good for motorists.
As you can see there’s plenty of mixed information for a stagnent market. The financial media are heavly pushing “doom and gloom”, but some of this is more just speculation. For example, I’ve noticed bloomberg.com using the word “probably” a lot lately.
The financial crisis has helped to weed out corrupt figures like Bernie Madoff and there will more investigation.
President Barrack Obama wants to access the remaining $350b of the $700b bail out money introduced by the bush administration. Additionally he wants to put through to the Senate for voting, a $775b stimulus package. So, hopefully he will have over a trillion USD to work with.
The answer to your question given the time frame you’ve given is that I’m very confident the market will rebound, particularly in 2010.
Companies that survive the crisis will eventually thrive becuase they will have a greater share of their respective industries after their competitors go bankrupt.
Governments and central banks around the world have only really started to seriously react in the 3rd or 4th quarter of 2008 so for better or worse I think 2009 is the year that this reccession sorts itself out.