Does anyone know? The economy is doing very bad, but is it getting better? There are companies that are still making money, but is it just a head fake? If you don't know then stop guessing. If you are an investor with a long out look, then suck it up and make a diversified portfolio.
Yes, that is right, the same old story! Diversify, diversify, diversity! It really does work and trying to time the market is for people who like to pain. If you made consistent investments over the past two years then your in a negative position, but if you have been diversifying your portfolio and allocating cash for opportunities, then you just might be able to make it through these markets. Always have some cash! Always!
If you haven't learned that opportunities come when you least expect it, then you have been under a rock over the past four weeks. Some stocks on the S&P are up over 100%. How, you ask? If a $10 stock goes to a $1 then you lost 90%, but if that same stock is purchased at $1 and it goes to $2, then you just make 10%. Wow, sounds simple right, wrong. It is very difficult to know when there is a buying opportunity. Diversify, wait for good companies to have a bad year and make it your entry point. Keep cash.
Who cares if the rally is real? That question is for the history books, you just keep making sense of what is happening today, tomorrow is another ball of bonuses and bailouts. Notice both those words have the letters "b" and "s" in them.
Friday, April 3, 2009
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