NEW YORK — Are stocks finally selling at bargain prices?
The plunge on Wall Street has sliced the value of stocks in half since the 2007 peak. That’s prompting debate on whether stocks — now appearing to sell at a red-tag-sale prices — are at a safe entry point.
President Obama, who is moving to boost investor confidence, weighed in on this topic Tuesday, noting that stocks have become a lot cheaper relative to earnings. He said it is “starting to get to the point where buying stocks is potentially a good deal if you’ve got a long-term perspective.”
It could be just me, but I’m not tempted at this point. Why buy stock into a company now when you’re still unsure if they can create real value in the long-term? Just because I “can” doesn’t mean I “should.” :rolleyes:
The only industry where it may make sense (in my non humble opinion) to buy stocks is the health care industry. THAT is one industry that will never die out. Even Luke (Christ’s apostle) was a former doctor and Christ was often called ‘healer.’
You might be right, but 3750 doesn’t strike me as particularly likely. The market is alwasy forward-looking. The only question is whether most have factored in the downside. But right now, the consensus seems to be at a particular level, but with “no confidence” votes here and there. Most of what the market is now doing is “day trading”.
It does seem to me there might be a mild upturn in the market (but not in the economy) toward the end of the second quarter. There are those who believe (wrongly, in my opinion) that we’ll see some kind of “bottom” in the economy about then. My guess, I suppose, is as good as any other, but I’m looking for 2009 to be a total dog. If we see any significant and consistent upturn in the market before mid 2010, I will be surprised.
Meanwhile, while some people are going under, others are saving money and/or reducing debt. My guess is that the latter is having a greater negative effect on the economy than the former. Ultimately, people will spend money and invest again. It’s not that there is no money out there. It’s that people won’t spend it or invest it.
It’s ironic that Rahm Immanuel said what he did about not letting a crisis go to waste. Unfortunately, I do think Obama and the congress have done just exactly that, by using it in a most unfortunate way. They used it to scare everybody into going along with their spending plans. Now, I think it’s too late for any “jawboning” to be of any value.
What people are forgetting to factor in is the “Captilistic Deflation” effects. This administration has clearly stated that they didn’t think the Free Market(Capitilism) was working. Hence all the moves they are making oppose any Capitilistic influences.
Basically everything from 1980’s and beyond is Capitilistic effects. This administration will chop us down to the 1980’s for sure.
Just look at the DJIA curves, from 1930 to present, and this will be plain as day.
Well, the DOW went to 6500 today, so it’s a lot closer to your prediction than they were to where we were a year ago. I’ll give you that.
A whole lot of this is due to a pervasive lack of confidence. “Jawboning” the market caused hardly a blip on the screen. What I really think blew the confidence was not even so much the massive government spending as the flippancy exhibited in what it is to be spent upon. Geithner certainly didn’t help when he made it clear he had no idea what to do.
So what does Obama do? Announce that future spending bills will be written by exactly the same crazy people who wrote the “Stimulus bill”, and that, essentially, he sees his function as signing his name.
I guess a lot depends on confidence, doesn’t it. And whether the populace thinks it or not, it’s clear that “the street” believes there’s nobody with his hand on the tiller at all.
Especially with their premiums going up an estimated 19% a year on average. No doubt that is safe.
Even though I am keeping my money in cash right now (interest savings account)and gold, I am keeping close eye on energy companies and especially companies that are investing in development of renewable energies.
I don’t have a crystal ball, and my guess is no better than anybody else’s. But I’ll bet the market falls out of bed in the morning, bobs around in the early afternoon and goes up a bit at the end. Seems like everybody’s a day trader anymore, including the short sellers.
A lot of big name stocks are going for pennies a share now. You could jump in and not be risking much-and you could be in for a big gain. It all depends on whether the company you invest in survives. If it does, you’re in the money…