Making money in this market? Here’s how

You can make money in any market. The country will still run regardless of where and when the DOW bottoms out. Some say we have not hit bottom, others are saying if you reach up you can touch it. The glass has 50% of its’ capacity. The problem herein is determining whether you are drinking or pouring. I see many good stocks. As I like to say, if you like it a $12 you gotta love it at $6. I predict a 19 month period of idling followed by 4 to 5 years of slow movement.

LOL

pending home sells up.

these are just home sells from the month before still on the books as no one can get a loan.

LOL and the silly stock market thinks it is a good thing. Silly people.

No. It’s too late to sell, but too soon to buy. The market-makers are still lowering down the bid prices, and (naked) shorting resumed again today at noon time, inflating the supply of ’shares’ for sale.

Hold onto your cash, enjoy the rise in your bonds, and wait to buy in at the bottom, which will probably be when the (naked) shorts start to cover.

We’re getting close. I hope it bottoms out at only a 50% top-to-bottom drop and not 80% (or worse).

Can the stock market go to zero ?

Paul,

You have so much faith in these CEO’s and politicians. (Business as usual, eh). smile

Okay, let’s talk about safe investments in a down market. Here’s a tip:

Invest in WOODEN ARROWS.
They are so vital to national security that in the wake of the “worse national crisis since the Great Depression” Congress increased a hostile $700 Billion bailout to $850 Billion.

OR

Invest in SPAs.
AIG paid $500,000 at a spa (taxpayer expense) one week after receiving an $85 Billion bailout of their failed company.

Better yet, for a rain or shine investment, follow the Bailout money and invest in those companies.

The government is more than willing to throw good money after bad.

There are two out there that may still be good to make a buck on. Realty Income Corp -Symbol O is at $21.92 which is near the 52 week low and pays 7.54% Monthly Dividend. It has a 2.3 Billion Market Capitalization today. The other is HCP Inc. Symbol HCP
It is still well above the 52 week low of $26.80. It pays a 5.77% Quarterly Dividend and has a Market Capitalization of 7.9 Billion. Unless you believe everyone in the U.S. is going to get well overnight and no longer have any need for Health Care HCP is a pretty safe bet for the long haul.

I’ve been investing extra money twice per month in my usual no load mutual funds. Two of the funds NAVs have taken a big hit over the last 3 months, so I’m getting lots more shares for my dollars. I’ll be in nice shape when the market starts to rally again…I’m looking foward to it. In the meantime, while the market is bad I’m “stocking up” on low cost shares.

Paul, too early. Try some technical analysis — even a simple moving average crossover has a better hit rate than your hunches.

Jumping in front a market that is dropping like snapped elevator; Interesting strategy. Don’t worry be happy — plenty time to catch a real bottom.

“La monica you are in no position to tell anyone how to make money.

Having been wrong in all your bets during the last year and all…

Posted By nick: October 7, 2008 3:49 pm”
Nick I like your response over the last few months I thought Paul was a little too optimistic. Or maybe he was sold on all the bogus info coming from companies and the government.

It’s funny how people will follow what anybody tells them when all they had to do was look around. High gas prices, high housing costs, inflating goods, or I forgot we have endless amounts of wealth (sarcasm)

I don’t invest in PYRAMIDS. That is, companies that use fake growth numbers to enrich executives rather the “real” growth of a company.

The CEO of Lehman brother received @ $500 million for 11 years. Using him as an example, Lehman executive pay must add up to $100’s of billions.

OF COURSE, the company is bankrupt. Pay was unsustainable. For example, the day Lehman Bros. started paying executives outragious salaries is the day the company stopped being a legitimate company. It became one big PYRAMID scheme.

That’s the problem with the bailout. The companies are legitimate. “No matter how much you dress-up ($700 billion) a pig, it is still a pig (pyramid).

The people driving this ship have no clue how to keep it from hitting bottom! Gotta love it! Hopefully the market will continue to fall! Serves all the greedy people right, hopefully all of wallstreet loose their retirement also! LOL

Oh Paul.

As usual you are too late with a good article about a treacherous market that has been falling for over a year and a professional who saw it early on.

On the other hand you are too early with this article which seems to say it is time to buy into this mess.

I must admit I too was too early when I said people should start buying (but not too greedily) when the Dow got to between 10,000 and 10,250. Fortunately for me the Dow blew past those numbers so fast that I have not started buying yet and won’t until this market bottoms (where? maybe below 8,000?) and starts and maintains an obvious move up. Since this probably won’t happen this year, don’t help people lose any more money than you already have with your poorly informed/timed articles.

George Bush just total everyone everything is fine and there is nothing to worry about.

OK people it’s time to really worry if that silly man Bush is saying all the time there is nothing to worry about.

Hey didn’t that Mad Magazine person say What me worry?.

Perhaps we need to call Bush by the nick name Mad Bush.

It’s like I said last week a Federal Reserve Governor said buy food, gas and ammo. He was not kidding folks.

La monica you are in no position to tell anyone how to make money.

Having been wrong in all your bets during the last year and all…

Hey,

where are all the people who kept saying everything was fine?

how about the folks who “had” to speculate in commodities (because they “had” to make 25% on their investments), or the ones who were only buying Asian stocks for the same reason? Made a pile of money lately?

(I would ask forgiveness for my snide remarks were it not for the damage to all of us that the “make the most money possible – nothing else matters” mentality has done to the working people who created the wealth you “earned”.)

Actually, the best time to buy stocks absolutely IS while they’re down. If you buy a stock when the market is up and sell when it’s down you lose money…

finding Forrester- “your the man now, dog”

Paul, your shared optimism with Forrester is ice-numbing. your article sounds a lot like the ushers on Titanic telling all the upper class to quietly get a life jacket and report on deck.

WOW for those who think China will come to the rescue and buy all our worthless stock and bonds get a look at this CNN report :

“The Chinese reaction is unfortunate and results in missed opportunities,” Upton said. “We feel that the global security environment calls for U.S. and [Chinese] officials to maintain close relations to address common security challenges.”

The “bilateral events” China called off or postponed involve “senior level visits and humanitarian assistance/disaster relief exchanges” scheduled to happen by the end of November, he said.

China is getting ready to go to work with us over Taiwan. Right they are going to buying our stuff while they bomb our cities right?

A few people can make money while the market is going down. But only a few.

By the time the market crashed in ‘29, it was over inflated because everyone was in it and stock was trading like beany babies. i.e. its value was in relation to how many people wanted it “today”, not its intrinsic value. (For the stock market to be stable it has to trade at or near its intrinsic value.)

Again, in ‘00 we had a big bubble due to too much (yes, its possible) investment in the stock market.

Then we re-inflated that bubble powered by the housing bubble where the price of houses was too greatly influenced by the amount of money looking to invest when stability depends on working people being able to afford a house they want to live in. *whew*

Our economy has tanked. We over leveraged, over borrowed, over consumed under produced and under saved.

We will see how that little bitty tiny fund that doesn’t effect markets does when the next consumer confidence report comes out, when retail sales reports start coming in for Christmas, when unemployment numbers start coming out, when baby boommers start selling the 401k’s to live, when state and local governments are forced to cut spending and when rates are forced to rise do to our Federal Government borrowing all available funds.

I put my modest investments into cash three months ago. As a result I have avoided loosing about 30% of the value. I have been poised to get back into stocks, but things are too volitile. Nevertheless I expect to be back in stocks before the end of this month.

LOL

Let’s see people have quit putting good money into their 401k’s and some have taken some money out to pay the mortgage. The net effect is less money going into stock market than is coming out. Ass in retired people soon will be taking out a lot of money and newbees will only be making $12 an hour or $24,000 a year vs a retired person taking out $50,000 a year.

Right stock are going to tank big time in the coming years.

I say take yiour money out now and keep what little there is left before the Wall Street bankers steal the other half of it.