Reasons to buy stocks
The first post on the Stock Market for Beginners - a new venture for optimistic souls who believe (or hope) the stock market will soon be bottoming out. According to many we are going through a bottoming process, according to some we have already seen the bottom and according to others we ain't seen nothing yet !
As I write we have just seen the worst US unemployment numbers in living memory - an increase of 533,000 - worse than most people were expecting and yet the DOW is up 273 the NASDAQ is up 56 and the S&P is up 29 ! So maybe that's a sign that the market is finally turning. Up on bad news.
Personally, I will put my neck on the line and say we are somewhere near the bottom (i.e. within 15% - so the DOW could fall back to around 6800 - UPDATE the DOW fell back to 6500 in March 2009) and we may start to see the recovery in January. I'm not confident that we will see the famous Santa Claus Rally this year. [Update the DOW is now around 7100 and heading lower - - Citigroup has more or less been nationalized Goldman Sachs says 6000 to come on the DOW before this is over] - this despite the fact that the Oracle of Omaha said it was time to buy stocks back in October when the DOW was around 8200. I personally expect to see somewhere around 6600 on the DOW soon.] [UPDATE : the stock markets appear to have bottomed out in early March and have recovered sharply since, though many people now expect the markets to fall back and re-test the lows seen in March]
So watch this space, this is the first post just to set the ball rolling. Stick me in your bookmarks, who knows I might say something useful !