Is this the best time to buy stocks?

Now that the market is so low is this time to buy stocks? I would think that the economy should be getting better within the next few years to sell and make some profit. Does anyone think this is bad idea.... maybe another possible crash like what happened in 1987?

Yes it is a better time to buy now than during Oct 2007. I suspect that the market has hit the bottom for now. As with any investment you need to watch your returns and get out when things start to go the wrong way i.e.. minimize your losses, use a stop loss. Shed the idea of buy and hold. Over the past month, I have been buying on the dips.

I suggest that you look at a historical chart of Nasdaq between years 2000 and 2002.
http://stockcharts.com/charts/performance/perf.html?$compq

Nasdaq crashed from its peak of 5048 to 3164 and then recovered in a huge rally all the way to 4246 before steadily declining all the way to 1129.

People always have difficulty accepting a turn for the worse. And at the beginning of serious trouble, they often ignore the facts and choose to believe their own wishful thinking. But eventually they have no choice but to accept the facts. Because no wishful thinking can make the facts go away.

I suggest that you read what the experts have to say about the present state of the economy and whether recent moves made by companies and the government are likely to make the current economic troubles go away quickly.

I'd say that today's stock market rally had more to do with technical reasons than with improved prospects for the economy. Today was the start of a new quarter. And many insititutional investors have started buying because they have to report their profits or losses at the end of every quarter. Perhaps many of them thought that the stock market was cheap due to recent declines.

Many of them are thinking ahead only one quarter at a time. And for such short term, they may be right in their stock buying.

But if you follow them and buy too with a plan to hold the stocks for a long time (years). Then you may end up being severely disappointed.

The market could go much lower. Nobody really knows. I personally do not like how things are sizing up. I think large layoffs are coming from the financial sector and retail sector. The housing bubble may go on for several more years.

I inherited $40,000 two weeks ago and the only investment i felt comfortable with was taking $20,000 and buying Blue Chip Stocks in my DRIP Plan and putting the other $20,000 into a CD.

I felt good with my DRIP Plan because i purchased Toyota, General Electric, Walmart and Kinder Morgan. All companies that will be around for a long time.

Best of Luck

If you plan on buying and holding for years, it may be a good time. But I feel that things may drop even lower...... things will bounce back and then have another correction.

If you aren't too knowledgable stocks, you might as well just buy while things are relatively cheap and discounted, rather than trying to "time the market" and potentially missing it.

Although some investors say "Never try to catch a falling knife", ie. Don't buy until things show signs of starting to go back up again. To be safe, maybe buy 1/2 of what you intend to buy at first.

I just bought Google a week or two ago because I think it's way undervalued and heading back to $500-$550 range soon.
I bought Visa about the same time because I know it will at least double in the next 1-2 years.
Not making any individual recommendations, just saying. For me, this was the time to buy.

I think it has almost reach the bottom. So time to buy

http://www.goldenbullstocks.com takes the guess work out of it and do the work for you, try them out!

Don't go rush, try to find and learn more about stocks. here are some great website that gives good information about stocks, trading and forex.

http://www.netpicks.com
http://www.universalmarkettrader.com

Diversify! I think it is a good time to buy since the stock market bottoms before the economy. With an inferred government insurance/bail-out, big money is calmed and stopped fleeing to treasuries. Of course, the steadies like food, utilities seem better than financials and speculative commodities (oil, gold)

I am 75% in bonds since December so my movement of assets saved me heartache. I moved 10% back into US and international funds.

http://www.oldstocks.com/advice.htm

Here's a good article for trying to figure out what to do in this stock market environment. The concept basically agrees with your assessment that it IS a good time to buy considering that the market is down this year and now may be a good entry point.

http://www.associatedcontent.com/article/682651/what_to_do_with_this_stock_market_buy.html?cat=3

It also looks at some historical scenarios where it would have been a good time to buy/sell for comparison purposes.

Best of luck!

no one knows. and dont listen to forecast, they fail.
without significant sign of recovery, the investmet can only be short-term, but short-term speculation are for pros. dont ever try to do that.
stay short, Cash is king.
crab

No one knows. If you try to guess, you are market timing and that usually ends up costing people a lot of money. I saw people lose everything in the tech bust.

Please don't do this. Take some time to learn how to invest (not gamble) properly. Here's a good site that will help you assess your risk tolerance, set up an asset allocation and over time you will make money.

Ihttp://www.saveyournestegg.com/diy.html

In the beginning â€œnewbieâ€ traders and investors DO NOT INVEST THE FIRST cent or dollar. No amount of money.

In the beginning you LEARN HOW:
A] the stock market works.

B] to invest in many, many various ways.

C] to properly trade

D] many other concepts and aspects.

Beginning or novice ['newbies"] investors and traders ALWAYS make mistakes. In fact, throughout a person's avocation or hobby to do trading, he/she will make mistakes.

In the very beginning, you READ AND LEARN about the market and how it works:
Read "Investing for Dummies"
As you are reading and doing research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before.

You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to Investopediaâ€™s dictionary.

http://investopedia.com is a free site. Itâ€™s recognized by Y! A as a "Featured Knowledge Partner".

It probably wonâ€™t be long when youâ€™ll feel youâ€™re ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. It also has a free, paper trading platform. You can set up a virtual account and almost trade as though you were trading with real money.

http://finance.yahoo.com is also recognized by Y! A as a "Featured Knowledge Partner"
END E-MAIL #1
The thought processes are:
1] to have more successful trades than failing trades.
2] to minimize the losses of those losing trades.
3] "To live to trade another day." Having enough money in the trading account to return to the market.

ALL this is accomplished by a few true expressions used on Wall Street:
Some trading expressions come to mind:
A] "On Wall Street there aren't any gifts."
No one gives anyone else anything - not even stock tips.

B] BUlls [BUyers] earn money.
BEars [SEllers] earn money.
Pigs get fat.
Hogs [Greedy Traders] get slaughtered. They lose the money in their trading accounts.

C] "Trees don't grow to Heaven. Neither do stocks or any other investments."
In other words: What goes up, MUST come down!

D] "Plan your trade. THEN trade your plan!"
Have a trading plan with rules for that plan for each strategy.

I want everyone to know I DO NOT own any portion of this manâ€™s estate, nor am I associated with him or any one else connected with him in any way. I am not part of the publishing company or an agent or anything else. This man does not know me from Adam AND I donâ€™t know him. I know of him and the wonderful book he wrote. THIS IS NOT SPAM.
You should buy a copy of this book:
â€œThe Richest Man in Babylonâ€ by George S. Classon. You can get the book on http://amazon.com
Its very easy to read. Its very easy to follow. You can write in it. You can make notes in it. All you have to do is to read five [5] pages - Letâ€™s count
1 - 2 - 3 - 4 - 5 pages of this book - or any book - each and every day.
OR You can leave it sit on the shelf, on a table or on the floor and let it collect dust.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

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