Investing, Time to Get Ready to Buy Stocks

The guidance from the last blog last week was to hold your investment positions for a number of reasons. The guidance now is to get ready to buy stocks and let the market tell you when to buy as stocks are ON SALE NOW.

This past week, we had the worst performance on record even worse than during the depression. Let's recap:

• Virtually all investments crashed: stocks, bonds, and commodites except for gold.
• Stocks dropped the largest point total and percentage amount ever.
• Investors pulled money out of the market and put it into cash in large chunks.
• On Friday, we had a 1000+ point swing and got within about 5% of the low during the last correction.
• On Friday, we had about 10 times the normal volume on the NYSE, 11.5 billion shares.
• As you check any US or international mutual fund it seems that it has lost about half of the value.
• If you want to see what a financial shock looks like as yourself did you really want to look at your account balance or your mutual fund performance???

If we got within 5% of the previous correction this means that we probably know where the bottom will occur, Notice investors bought stocks to achieve a 1,000 point swing. THIS MEANS THAT THE STOCK MARKET IS NOW ON SALE, TIME TO BUY!!!!!

When do you know when it is a bottom? When bad news comes in and the stock market goes up anyway.

When you see this happen you can buy literally any US or international mutual fund as virtually all of them were punished. You want to avoid gold as it will fall and act like the other commodities as the crisis ends. You want to avoid bonds as interest rates will rise and price will fall as the crisis ends.