Buying Low: Is Now the Time to Invest?
There is an old saying about the stock market: “Buy low, sell high.” And for many, now is the time for just that. Indeed, there are plenty of so-called “vulture investors” out there right now, waiting to pounce. Stock Market Funding reports on how things are playing out for these investors:
NY Times reports even before the ink dries on a proposed $700 billion bailout for the financial industry, Wall Street players have begun jockeying to be the first ones to snap up distressed investments on the cheap. As they try to make sense of how a government bailout would play, vulture investors are combing through balance sheets of possible targets that could run into trouble if banks start calling back loans to businesses and the economy worsens. …
They are preparing for a field day for deals, not only in the financial industry, but in the industrial, retail and other sectors where the flagging economy and tight credit will push more companies to the brink.
You don’t have to be a vulture investor to take advantage of the climate, though. Measured, thoughtful investments made now can yield good results down the road. Considering value stocks and companies with good fundamentals that are likely to recover is good bargain-hunting sense.
Others are considering funds that are meant to take advantage of pooled performance. Index funds are rather popular right now, since you can get more for less, and — over time — the market generally gains. But for such a strategy it is necessary to have a long term outlook. We’re talking an outlook of 10 to 20 years in order for such a strategy to work well.
Still others are hedging with commodities and using gold to try and prevent inflation from eating away all of their assets.
Are you employing any strategies to maximize your investments right now?
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
Tags: stock market, stock market news, investing blog, index funds,
economy, investments, vulture investors
September 24th, 2008 at 2:48 pm
[…] time to cut your losses on some investments, there are those that actually represent a bargain. You can buy at a low prices — getting more for your money — and then when the market recovers, you will be sitting […]