Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
S&P SEASONAL ANALYSIS - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Mainstream Media View- Beaten-Down Stocks Going Cheap!

Commodities / Gold & Silver Mar 14, 2008 - 02:32 PM GMT

By: Adrian_Ash

Commodities

"...Oh gee, what a move! It took me almost two years to get back to break-even..."

"THE TIME TO MAKE MONEY in the stock market is not when things are going gangbusters," reckons Stephen Gandel – yet another senior writer at Money Magazine . (Do they have any juniors...? Just wondering.)


"[The time to make money is] when things look as if they're going bust," he advises. "Just ask anyone who invested in beaten-down US stocks after the market sank in the immediate aftermath of 9/11."

Okay, let's ask him. Because things really do look like they're "going bust" right now, starting at Bear Stearns and winding up there again 10 months later...but not before feeding into the global finance system and finally the very credibility of official currency itself.

Say, value-loving investor, how did things pan out after you bought beaten-down stocks post-9/11...?

"Oh gee, what a move!" says our beaten-down buyer.

"I bought both the S&P and the Nasdaq when the markets re-opened on Sept. 17th, and I made 30% on tech stocks and 12% on broader stocks in less than three months.

"Trouble is, I didn't know a good thing when I got it, and I was underwater again by July the next year. And thanks to the deeper trend – which was downhill all the way from March of 2000 – I was actually fast on my way to losing one-fifth of my money by the real bottom of mid-Oct. 2002.

"It took me another seven months on the QQQQ to get back to break-even from there. The S&P didn't get back to its post-9/11 low until August 2003."

What? Your plucky beaten-down bargains took nearly two years to get straight?

"Hmm, yeah. Kinda got screwed by the trend – which was, like I said, clearly down. Even though the bounce looked a shoo-in. Which it was."

Take heart, investors everywhere! "Step out of the stock market, even temporarily, and you may miss the whole point of owning stocks," says Janice Revell, another senior writer at CNN's Money Magazine.

The whole point being, of course, that bear markets in stocks – sparked by mal-investments in credit-fuelled bubbles – take a good deal longer to work out than anyone ever dares guess.

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
City correspondent for The Daily Reckoning in London and a regular contributor to MoneyWeek magazine, Adrian Ash is the editor of Gold News and head of research at www.BullionVault.com , giving you direct access to investment gold, vaulted in Zurich , on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2008

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Adrian Ash Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in