Tuesday, February 12, 2008

U.S. stock market, good time for bargains

For the average investor, the U.S. stock market is looking downright scary. One day it's plummeting. The next day it's soaring. But for an aggressive investor such as Josh Wilburn of Odenton, Md., there is nothing to fear. "I like it," Wilburn said. " you get some very rare opportunities when this happens. I don't know how low things will go, but there will be bargains." When it comes to investing, what one person might consider a lost, another might consider a potential gain. As the renowned investor and philanthropist Shelby Davis once said: "You make most of your money in a bear market. You just don't realize it at the time. And though it might seem counterintuitive, said Robert Moon, a senior adviser in the Smith Barney Citigroup Family Office, buy the clunkers. "Time and again, it has been proven that the way to accumulate wealth in the market is to buy assets when they are in distress." By Nancy Trajos, The Washington Post.

Many times the news media quotes the falling of the stock market as evidence that the economy is heading toward a recession. But according to Shelby Davis this is the time where you find bargains and make money. This is called a bear market and last an average of 14 months. If you bought stock at the market peak, and then it falls in a bear market, it would have taken you an average of 3.6 years to recover your money. Don"t let the market scare you. When it goes down, look for bargains. This is where you will make most of your money. If you bought at the peak and you see your investment going down. become a cowboy and hold on for the ride looking for bargains. And most of all, don't let any politician scare you that the economy is heading to a recession by looking at the stock market. All he or she wants is for you to put them in office promising that they can make the market go up. Why can't they make the market or economy go up now? Why can't they share what they know now? Why do we have to make a person President before they can solve a problem?


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