Has the Stock Market Bottomed?
08/03/08 Categories: Stock Investing and
Investments
Many
investors keep asking whether the stock market has bottomed or not.
Also, some economists are saying we haven't technically entered a
bear market yet. Who do you believe and what is going on with this
stock market?
The infamous host of CNBC's "Mad Money" show and
CEO of theStreet.com, Jim
Cramer, has called a bottom on the stock market this past
week. He said that the
pain and negativity in investors have been so high things just have
to change. Also, this last drop in the market
brought financials to decade (and longer) lows. Although the banks and broker-dealers have some
rough times ahead, the worst of the writedowns is most likely
over.
On the other hand, many economists say since we have not yet experienced negative GDP growth, we have not come to a recession. A few economists on CNBC and Bloomberg believe that the worst has not come yet.
Ask any average person in the US and they will tell you that we are in a recession; that is how you know if we are in one or not. Ask an economist living in a theoretical bubble, and you will get a theoretical answer (not a real life answer).
The market, however, has already priced in a lot of pain. For many stocks, their prices have dropped below what they should have. This has been and continues to be a bear market, but I do believe the worst is over.
The best stock investing advice I would suggest is to start buying now if you didn't buy on the extreme lows of last month. Since we are still in bear market territory, there will be some steep drops to come from time to time; that is your buying time.
Don't get caught up in the rallies and try to buy into them. The market will come back down and let you buy low. Go to Google Finance, and do some research: Buy good company stocks that have been beaten down by the bear market while prices are still cheap.
Why Invest in Stocks?Find Out On Zecco.com Free Blogs, Forums & Trade.
The infamous host of CNBC's "Mad Money" show and
CEO of theStreet.com, Jim
Cramer, has called a bottom on the stock market this past
week. He said that the
pain and negativity in investors have been so high things just have
to change. Also, this last drop in the market
brought financials to decade (and longer) lows. Although the banks and broker-dealers have some
rough times ahead, the worst of the writedowns is most likely
over.On the other hand, many economists say since we have not yet experienced negative GDP growth, we have not come to a recession. A few economists on CNBC and Bloomberg believe that the worst has not come yet.
Ask any average person in the US and they will tell you that we are in a recession; that is how you know if we are in one or not. Ask an economist living in a theoretical bubble, and you will get a theoretical answer (not a real life answer).
The market, however, has already priced in a lot of pain. For many stocks, their prices have dropped below what they should have. This has been and continues to be a bear market, but I do believe the worst is over.
The best stock investing advice I would suggest is to start buying now if you didn't buy on the extreme lows of last month. Since we are still in bear market territory, there will be some steep drops to come from time to time; that is your buying time.
Don't get caught up in the rallies and try to buy into them. The market will come back down and let you buy low. Go to Google Finance, and do some research: Buy good company stocks that have been beaten down by the bear market while prices are still cheap.
Why Invest in Stocks?Find Out On Zecco.com Free Blogs, Forums & Trade.
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