Monday, October 10, 2011

BUY STOCKS NOW, AND LOTS OF IT

When it comes to housing right now, it's certainly a buyer's market. I tend to think that the stock market is as well, and I say buy stocks now, and lots of it. I know it sounds like a crazy idea. There's a ton of uncertainty on all points of the economy, and it's not just about the United States at this point, but what's going on the world over. Everyone's economy is suffering, not just ours. Still, there's a lot of cash sitting, waiting on the sidelines. Corporations have it. I think many individual investors have it. And a lot of that cash will eventually wind up either in the marketplace or in the stock market—both of which bode well for investors by the way.
On top of all of that, haven't we been here before? We certainly were in a place similar to this in the years between 1929-1932. We were in a place similar to this just before Ronald Reagan became president. There are variables, of course. But when times seem to be so bad that there's no point of return, that's when you have to pounce. Stocks prices are heavily discounted right now, and I think most people who are in the know, even the ones who are heading for the hills with their cach├ęs of cash, would all agree that the fundamentals are still strong. Have you seen the price to earnings ratios on some of these stocks?

Jim Cramer says get paid to wait, and I think that's a sound bit of advice in this current investment climate. Buy the bellweathers. Look for high yields and strong secular companies that are paying them. Buy smartly by all means, and then close your eyes and keep buying.

The end of the world is hardly around the corner. The death of capitalism is hardly imminent. The resilient nature of the American people will prevail, and will lead the way to a recovery in the economy that will come. The American economy, as well as the economies of the world will see better times ahead, and those who will reap the greatest reward will be those who never lost faith through the worst of times.

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