Wednesday, April 30, 2008

It's A Buyer's Market

I've been saying, for some time now, that it's a buyer's market as far as stocks are concerned. Courageous investors who are not afraid to ride out the turmoil in the current market can pick up fantastic bargains on U.S. stocks. I've been diverting as much cash as possible into stocks while the prices are down. Recently we've had a few run ups in prices, as investors question where the market is headed. Since it is impossible to know when the market will make a substantial recovery, the most prudent course of action would be to buy at, or near the bottom and wait it out. We may not have seen the bottom to date, however, it's my guess that we're getting pretty close. I can't help but recall the economic downturn of the late 80's, when the housing market was down, people were losing their homes, the savings and loans were collapsing from bad mortgages, the U.S. dollar was beaten down and there were advertisements running everywhere telling people to put their money in to gold, even though it was at an all time high. All these things occurred near the bottom of the stock market. We are seeing the exact same things going on now. When will the market turn? Your guess is as good as mine. All I really know is that we are presented with one of those really great opportunities to pick up stocks on the cheap and position ourselves to make a pile of money when the recovery does come. I personally invest for income and growth. I look for companies that pay good dividends and have the earnings to support those payouts, but also have prospects for growth. They are out there, you just have to look for them.

If you don't want to take my word for it, see what millionaire investor and best selling author Robert Kiyosaki has to say about stocks in his RichDad blog article entitled: Wednesday, April 30, 2008

When the Squeeze Is On, Bargains Abound


If I'd had any questions about my current investment plan, they were all put to rest when I read this article. Like I said in my last post, don't be afraid to admit that some people are just smarter than you are. Listen to what they have to say and figure out how you can use that to your advantage.

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