ColGlobe At The Spoof

Tuesday, January 20, 2009

Stock Market Woes

Are you having stock market woes?  For many, but only a small percentage of the population, the current stock market implosion is a terrible thing.  For the vast majority of us, it will make our lives a little better.  Let me explain it to you, slowly, and without using too many large words.

When the stock market is high, people were buying those high priced stocks instead of selling them are being set up for failure.  You see, when the price of a stock falls, the value goes down, and a stockholder takes a loss.  On the other hand, as that stock drops, so does the value of that stock as it filters down to the consumer market, and we see companies having price lowering wars to try and lure us in.  They need your money.

Okay, so now mainstreet, who expensive politicians are claiming to want to help, is finally getting a break in a continuous rise in pricing that has gone on for nearly a decade.  Fuel is costing less, food is costing less, the value of items are going down, and it is being reflected in our bank accounts in a way that bail-out billions and tax-payer rebates could never do.  The little guy is not hurt by falling stocks, but helped by them, because the value of that person's money suddenly goes up.

And if you have a few thousand dollars you'd like to do something with, ignore the Wall Street experts who are telling you to hold on to it.  Now is the time to invest, if ever there was one.  Think about it.  Are you more likely to make a profit on stock purchased at 35 a share, or stock purchased at the low of 17 a share?  Come on, folks, this is not rocket science.  The golden rule of stock trading is BUY LOW - SELL HIGH.  The people who don't want you to buy stocks now are the ones who purchased it at a higher price, and hope to drive the value up again to regain some lost revenue.  BUY LOW.  Don't even think about selling anything.  Whatever you have, keep it.  

That includes for selling a car or home.  You can't sell it for the same value it had, so don't try.  HOWEVER, if we BUY LOW, now is excellent for purchasing a home.  Builders are unloading property at record prices right now, to get out from under them.  If you purchase a home now, you are almost certainly guaranteed to make a profit on owning the home in just a few years.  BUY LOW.

Once you've bought a home, a car, and invested in AIG at bargain basement prices, sit on the investments.  The car is going to depreciate anyway, so you can cruise around town while you watch the stock market make a slow turn upward that multiplies the value of your investments.  Stock Market Woes?  Only for those who forgot to BUY LOW, and were stuck with worthless stock.

No comments:

Post a Comment