Rebuild Your Investment Portfolio Today

Written by Laura Cotterman


Its time to change your thinking about this beaten-up stock market and get excited aboutrepparttar tremendous long-term potential. If you findrepparttar 112764 current market makes you feel like sticking your head inrepparttar 112765 sand and you long forrepparttar 112766 "good old days" ofrepparttar 112767 roaring bull market you could be costing yourself a fortune.

In reality, 1999 should have been a time for a cautious and skeptical participation because stock prices were simply too high but insteadrepparttar 112768 excitement ran high. It seemed like everyone was playingrepparttar 112769 stock market and making a killing.

Those days are gone and instead many people are avoidingrepparttar 112770 market when actually this stock market offers alot to get excited about today. Isn't it exciting to acquire shares of companies with solid growth potential for 10 cents onrepparttar 112771 dollar? Well, that is where we are right now. Hundreds of blue-chip stocks are beaten down to multi-year lows and sentiment is as extremely negative as it once was positive. This isrepparttar 112772 time to look for investments that could pay off incredibly 10 or 15 years from now.

Don't focus on current market conditions atrepparttar 112773 expense of long-term potential. We should have been incredulous about stock prices inrepparttar 112774 late '90s, and we should be excited aboutrepparttar 112775 opportunities right now.

Almost everyone who owns stocks has been hammered these past two years but that is yesterday's news. There is no good that will come out of dwelling onrepparttar 112776 past. There are three things you need to do right now.

#1. Shake off any bad feelings you have aboutrepparttar 112777 stock market. The most important thing you can do is not to get depressed by fallen investments andrepparttar 112778 stock market decline. If you do, youmay miss long-term opportunities that are unfolding today for both your new investment capital and your holdings. Part of your new thinking will be to understand thatrepparttar 112779 market is a marathon although for a while it became a sprint. Forget aboutrepparttar 112780 gold rush mentality.

Geometry of the Stock Market Isn’t So Good

Written by Charles Payne


The slippery slope ofrepparttar Bear market just hit a 90-degree angle. After coasting at a 45-degree angle, that at times looked like it would plateau, stocks are now moving decidedly down hill and picking up speed. Each bump inrepparttar 112763 road this year has shaken out passengers, but now those thrown fromrepparttar 112764 market will face even greater fiscal injury (not to mention mental, as they will be taking lumps that at times will amount to 90% losses). Yet, it will be difficult to hang on. That said, it might be impossible to jump on. The real scary part is that we don’t have a road map for this kind of ride. The last time there was a two-year bear market was from January 1973 to December 1974. The last time there was a three-year bear market was from September 1939 to April 1942. It is fair to say that 95% of us know nothing ofrepparttar 112765 two-year bear market, so this is un-chartered territory. Adventure is fun when we get it via books and movies, but stock market investors don’t haverepparttar 112766 fortitude and luck of an Indiana Jones, they close their eyes whenrepparttar 112767 danger comes too close. However, now isrepparttar 112768 most important time ever to keep one’s eyes open. It is also time to start looking deep inrepparttar 112769 history books for answers. This isn’trepparttar 112770 first timerepparttar 112771 stock market has plunged, and it isn’trepparttar 112772 first bubble that has had to totally deflate.

According to published reports from Ned Davis research,repparttar 112773 average bear market lasts 418-days, and lops off 31% in stock market value. This data is focused exclusively onrepparttar 112774 Dow Jones industrial average. (I’m not sure howrepparttar 112775 NASDAQ figures into historical data. One thing is for sure, that index which worked so hard to shed its moniker asrepparttar 112776 "overrepparttar 112777 counter" market, has been so fractured that it may never recapture former glory. In fact, it seems like each session sees a former NASDAQ-listed company ringingrepparttar 112778 bell atrepparttar 112779 NYSE. It will be very tough to not only rebound, but to berepparttar 112780 hottest index with many of their brightest stars no longer listed.) Officially,repparttar 112781 Dow’s bear market began in January of 2000; so it is a long way passedrepparttar 112782 typical time frame. That said,repparttar 112783 index has been resilient, and at times was only a bear market in name. Despiterepparttar 112784 length ofrepparttar 112785 current bear market, it hasn’t satisfiedrepparttar 112786 historic norm in terms of value yielded. As it stands now,repparttar 112787 Dow is off 22% fromrepparttar 112788 all-time high. In many ways,repparttar 112789 index has been a victim of its own success. It is hard to sell off when there is a migration from tech stocks into comfort stocks. As an avid tape watcher, I could see over and over again thatrepparttar 112790 index wanted to pull back and investors wanted to take some profits offrepparttar 112791 table. PG, MMM and JNJ were - and are - trading atrepparttar 112792 high-end of their respective valuation ranges. Yet, beforerepparttar 112793 re-rotation could build a head of steam, there would be another bomb dropped in tech/biotech land.

Cont'd on page 2 ==>
 
ImproveHomeLife.com © 2005
Terms of Use