Time to Buy Stocks?
The question on everyone's mind right now is what exactly they should do in the stock market.
The answer depends on a lot of factors, most notably risk tolerance and patience. As a general rule of thumb, though, lets assume you have a modicum of patience and some tolerance for risk.
Given that, I think its clearly time to buy! Why? Looking at charts of the S&P, Dow and Nasdaq you can see the same thing in each: a deeply oversold market, that has come way off its lows, and is ripe for a continued bounce. Now, Im not saying to go all in right now, but rather commit some of your funds, leaving more if the market falls further. (Thats where the patience aspect comes in.). And if you get lucky and Friday was near the bottom? Then by all means sell on the next ramp up.
Of course, many people dont buy an index, but instead concentrate on their favorite stocks. Thats been my strategy and I focus on stocks that a) I use, and b) Im comfortable holding (and even buying more) if they slide further. Names? Im a frequent shopper at Safeway (NYSE:SWY), and a big user of Comcast (NASDAQ:CMCSA). Right now theyre on sale!