Is the bear market over? I heard some smart people on TV today telling the viewers that today was a good time?

to buy stocks?
Why do the smart people always say it is a good time to buy stocks?

we are still in a bear market
not a good time to own stocks
they always say it is a good time to buy stocks
just like real estate people claim it is a good time to buy a house
because they want to generate the commissions from traqding
they don't care about the consequences for the people
who get mixed up in these transactions

To answer your question, let me quote you last weekends Financial Times - "Prepare to buy as market nears low, says advisers"

"[an advisor] said the July low (5071) could be tested but he is not predicting a fall below 5000"

Two days later, the stock-market had shattered through the 'tester' level of 5071 and plummeted all the way down to 4800 in the worst day the S&P 500 had seen since 9/11.

That man must have been eating his words. And this carries a powerful message - these people are indeed experts, but just like football pundits, they're only using their judgement to predict, and are wrong rather often, as much of the market is left to luck, as nobody knew that such a barrage of bad news would hit us in the following week.

So firstly - If you look hard enough, you will always find an expert that agrees with your view of the market - that doesn't mean your view is the most likely. So if you're going to rely on their advice - check first with what the broader world of advisors are saying. Secondly, these people are only looking at 'indicators' and drawing conclusions, and cannot be sure at all that they are right. So be careful.

I'd like to make another point and that's whether you're looking in the long term or not. If you're looking in the short term, stock prices are very sensitive to press releases that few can predict, so as my FT quote shows - following TV pundits could cost you dearly. If you're looking the long term however, nobody can ignore that stock markets have always gone up, and that periods of good returns follow periods of crashes and slumps. If you buy now and hold, you can be pretty confident that in 10 years you'll have made a decent return. But would you have done better if you'd waited 6 months before investing? That is the question. Guessing the market's bottom isn't an exact science. 'Smart People' on TV are one source of infomation, but there are many others that may help you decide for yourself. You can read the financial news or collumnists: www.ft.com, for more infomation.

My personal view: Its likely that this is 'around' the low the indexes will get. However we are still at the mercy of more bad news. To quote someone who answered above: "Right now it is just about as low as it can get. ". Do not let yourself into this mindset.

That mindset goes like this 'Maaan its fallen so much! It can't possibly get any lower!!!' and this is a decision that is based purely on the size of the drop, rather than the true economic reality underpinning prices. Compared to previous bear markets, FURTHER DROPS ARE NOT OUT OF THE QUESTION. Feeling like a bear market is over simply because you 'feel' like it has dropped alot is simple an amateur view that could leave you with a very red face. Be wary.

Its a great time to buy, if you are going to hold for years. SIRI, AMD, ETGF, DISK are some that could really make you rich if you hold them long enough and buy them now.

It's a great time to buy if you think this is as low as the market will go. The question is; is this as low as it will go? My opinion, however, for young people this is absolutely a great time to buy.

The bear market is not over yet, but we should be close to the bottom. Could go down to 9700 on the Dow. If you are thinking of getting into the market, or redistributing, you may want to wait till their is real evidence of the market turning around. When it does turn around, make sure you are in. Their will be a bump when the bailout is passed, but might be very temporary, then possibly a new low. My suggestion, buy small mid or large cap growth funds, American Funds have some good offers, andthey pay a good dividend in Dec. I didn't hear the libertarians warning about this mess. You might want to reconsider.

Here is my advice: Invest NOW.

Everyone who says "sell sell sell" is being somewhat foolish in my opinion. The mantra always is: Buy Low, Sell High. Right now it is just about as low as it can get. Any money that you invest now will turn a massive profit in the long run. I would say in five years or so you will see that buying now was a smart decision. If you wait for the market to calm down you may make a bit more money in the short run, but in the long run you will lose out on a great opportunity. Remember, Patience, Patience, Patience is the rule when you are investing.

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