Friday, August 05, 2011

Bottom Feeding

As opposed to many people I think the stockmarket is at an idea point now. My investment strategy is too try and buy only when the market (or a particular stock) is low - it's called bottom feeding. We bottom-feeders have faith in the markets, faith in the charts that say stocks outperform other investments over the long haul, faith that things will get better and the real key is available cash to take advantage of the lower prices.

I am not smart enough to buy in a "normal" market and come out ahead. Altho the market is not as bad as last year there are good buys in stable companies out there. I just brought a few hundred shares today in companies I think the price will raise in the future. They may continue to drop in price in the short run, but I felt it was a good price I purchased them at today and one of my requirements is the stock pays a dividend so when I sell them in the next year (world coming to an end 2012) I hope over all to beat the 1% interest rate banks are currently paying and recover more than what I paid for them.

You can be sure you will be seeing many more American companies being purchased by foreign companies in the next couple of weeks as they always bottom feed.

1 comment:

Dana said...

Here ya go. Now is your chance to make that European trip money.