Sometimes and especially in the shakiest markets, a portfolio’s best defense is dip buying. As with any investment, questions must be answered on both sides of the transaction. On the one side are questions about the stock being purchased. Today, everyone asks: does the company rely on a lot of credit or have a lot of debt? On the other side, are questions about purchasing power; questions about how putting this money out right now might alter your own bottom line. So, how ’bout it, do you rely on a lot of credit or have a lot of debt?
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Monday
Many questions hung in the air Monday, March 17, 2008. Most of the market waited on edge to find out what would happen at the open. Starting that weekend and leading into Monday morning, it became about four words. Those four magic words — Is this the bottom? — still linger in the minds of analysts and traders now almost a full week later. Very few questions were answered Monday. In fact, it became only more confusing as the week went on. Read the rest of this entry »
All over the world people are asking four magic words: Is this the bottom? The answer from analysts even going back to January 2007 say certainly not — back then predictions suggested 50-60% loss from around a 14,000 DIJA. We’re about half way there despite all the Fed’s recent efforts (with intra-day lows of 11,756.60). If you look closer and pick a giant like Google, there were analysts who predicted it would be at $850 at this time. GOOG trades instead at almost exactly a 50-60% markdown with lows of 412.11.
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After 85 years on the market Bear Stearns is no more. The brokerage was consumed for a mere $2 per share, after being priced at one time for $160 — the buyer JP Morgan. This is perhaps only the first in what will be a series of downturns.
