A contrarian indicator
Investors certainly are shell-shocked by the way the stock market has started off the year. With the NASDAQ down more than 7%, everyone wants to know when the marker will finally put together a few positive days. We haven’t even really experienced the notorious “dead-cat” bounce.
With so much negativity, I have developed my own, unscientific, indicator of when it’s instance to step up to the plate and buy stocks. As a financial adviser, my phone has been ringing off the hook the final few days with anxious clients, wanting to know what they should do with their investment portfolios.
Over the final six months, we have gone through that three times. The market drop in the summer and next early winter had raised doubts about the wisdom of long-term investing. that third
Having been in that trade for many years, I can tell you that when average retail investors throw in the towel, and ask you to sell fairness positions, the end is approach.
Wise investors should gather all their courage and start buying cheap stocks.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has no position towering or short in any stock mentioned as of 1/9/08.
Original post by Aaron Katsman
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