The right time to invest in stock?

andre2410 · Jan 15, 2009

After economic downturn at the end of the year, now we starting to see a light to world economic.
And now, since the stock price is at the lowest price, do you think it's the best time to start investing again on stocks?
Many broker ask me to join them and buy stock now as they predict the stock price will be soaring in the next month.
What do you think about this?

sarthak_88 · Jan 15, 2009

Andre i dont think its the right time to do so..
although i agree the stock are really down these days but the biggest threat these days is that many company's are hinting to a shut down.
As we all are aware of what happened with Satyam investors so i think you can very well understand what the true scenario is...

udit · Jan 15, 2009

Hello Sarthak,
I think there can be two aspects one is if you want to take risk it is a right time because stock prices are not very high these days. But the risk of shutdown is involve with it. On the other hand growth can also be very big these days. So one should think about the risk taking capability these days.

Creativeelement · Jan 15, 2009

No, I don't think that it is a good idea to invest in the stock market right now. If someone wants to invest in something I think a good idea would be to invest in the Forex market as that market is more stable and you can get in and out short term.

stereonation71 · Jan 15, 2009

In my opinion, it is best time to buy something off season. So investing in downtime will prove to be worthy in future. And as far as fraud is concerned, investing in some established company will make you feel more secure because they are in market since beginning and they can't even think of sharp rise with unfair means. So go bold. Risk is everywhere and you can't even earn a penny without risk of loss.

mrregularman · Jan 16, 2009

There has to be bargains out there for picking, if you can afford the risk, and willing to wait for the profit.

Many companies are losing money because people are not buying a product, not because the product is bad.

The ripple effect is strangling many good companies that will not fail.

Even those that may fail.. for example, the break up (not bankruptcy) makes money.

Look back at the break up of the original AT&T. In 1974 or so, when they were hit with anti-trust the stock was worth about $1.00. By the late 80's just one of the companies "LUCENT" (formerly Bell Labs, subsidiary of AT&T) had a value in the high $80.00 range. If you had bought back then, and split your stock with the break up, you would currently own Cingular, AT&T, Lucent, pieces of all the BELL COMPANIES (bell south, bell north for example).

There is lots of wealth to be made.

The Rockefeller family made the original fortune from OIL. The second wave of wealth came during the great depression when they started to buy large tracts of land (such as Rockefeller Center, Manhattan) and large portions of stock in companies as the depression hit bottom and started to show signs of recovery.

jessika · Jan 17, 2009

I think investing at a time when the market is apparently at it's lowest and it is not expected to fall further, is a good idea. There is a reason behind this, the companies whose stocks have stumbled the most become more cautious and conscious about their moves, they start following better policies, raise their ethical behavior, in short they begin to understand and implement Corporate Governance for their business. This ultimately leads to rise in their share value.

Rick · Jan 17, 2009

I think as with anything it's all about risk there is a risk that it will backfire on you with the current economy the way it is.

However there is a chance investing in the right place will be an amazing idea but again as many have said with companies going bust and the current economical criss it could be a really bad idea.

I would personally wait till the economy became more stable before making an investment, as prices shouldn't shoot up that much within the next month but who knows but for me personally I would wait.

GunnedDown · Jan 17, 2009

I don't see why investing right now wouldn't be a good idea.. sure it may screw up the economy even more, but who cares - you'll gain profit! Buy everything in the stock market while the prices are at its lowest, sell when the economy goes back to normal (hopefully in less than 10 years :x). That way you gain a lot of profit.. unless if you think everyone will wait for the prices to drop even more.. that's pretty unlikely with the amount of selfish people in the world. So take the chance you have right now to make at least double your investment.

Akuma · Jan 18, 2009

Some stocks might be worth investing in, others might not be a good idea.

I'm not really big into investing in stocks, I much rather make other investments where I'm more in control. However, those too have risks..So you're not 100% safe either way.

GunnedDown · Jan 18, 2009

Akuma would you like to give some examples of where investing in stocks would not be a good idea? I'm just interested in what you are thinking about right now, but I think I know what you're talking about.. I think, we as the buyers, have more to say, because we are more important than the sellers right now. What we do dictates the price of something, so if we wait we can maybe decrease the prices. (did that even make sense lol..)

Jan · Jan 18, 2009

I think it's great idea to invest in the market now, if you have the money!

The market specially in the USA is quite unstable at the moment. But Barack Obama is soon taking over the president post it might get a positive reaction on the market. But I don't think it will be a that, even if some people believes that. The reason I don't think so is because is his speech did Barack told the American people that i's going to be a hard time from now since the world is on her knees at the moment.

And if you belive what "Mr. Doom" says about the American is going to fall down since the government loans so much money right now and they don't might even can pay it back later on.

So my advice to you that doesn't want to take any kind of risk, don't invest on the American market, look to east and see the possibility's on the European market instead.

Akuma · Jan 18, 2009

GunnedDown, I was referring mainly to the concept of investing in certain stocks, not all together. As I said some stocks might be worth investing in, while others might not be such a good idea. However it's always been like this as obviously there are both good and bad stocks. But right now, I think the risk is much higher as the economy is not in top shape so unless you're a financial expert and have some connections within an established company, you have to be careful when investing. For example, let's take Enron, they conned a lot of people. They made it look like everything was going swell, while they were punished and new precautions have been implemented so such a thing still does not happen again, I'm still not convinced. Therefore the stock market is way too risky right now for my pocket, if I was wealthier then maybe I'd take a bigger risk but for now I'll pass.. I hope that clarified what I was trying to say.

mike21 · Jan 19, 2009

i think that the time is right for big investors to buy stock at the moment because the rates of almost all the shares are down and you cannot expect the market to go down furthur even if a big investor's stock is going down then he has not much of a problem because he can invest in multiple companies and he can save himself from loses.small and medium investors need to stay away from the market at this moment.

The Parakeet · Jan 19, 2009

It's a good time to buy stock for long term gain. It's also a good time if you are an amazing daytrader, since the market is ridiculously sensitive.

If you have the money and are willing to let it sit around for a year, then there are some great deals lying out there. A number of companies took a huge hit to their stock price due to panic alone. If you can find a solid company with a reliable future, then buying some stock should be a safe bet. The standard rule apply though. Don't put all your eggs in one basket and don't put in anything that you'd die without.

McSwift · Jan 21, 2009

My avatar says it all, lol. I am bearish on the stock market right now, the mess is just too big and this recession is going to last a while.

pingpong12 · Feb 22, 2009

I believe there will be 2 keys to the turnaround. One is the market has to find a support level and stay there for 3 to 6 months. This will give investors confidence to believe that if they go in their losses would be minimal.

The 2nd key and one that most people dont talk much about will be the catalyst to the next bull market and that is the advent of Nanotechnology. I believe that when Nanotech can be marketing on a grand scale that it will make the internet bull market look wimpy. Nanotechnology will change the lives of every human being as we know it.

I predict the next real bull market will happen in 5 to 10 years from now and it will be the biggest one of all.

duray · Feb 25, 2009

unstable market makes it a very hard time for investing in stock market.
the only segment that worth a try will be hardware technology companies.
such as cisco, IBM.

The Parakeet · Feb 25, 2009

There are some gems in the rough though. I know that Genetech has been on a steady rise (I really wish I would have put some real money in that stock). I think that the energy sector might see a nice rise too, at least in the area of power companies. Oil stocks will also bottom out soon and those are a great deal for a long term investor.

pingpong12 · Mar 6, 2009

The Parakeet said:
There are some gems in the rough though. I know that Genetech has been on a steady rise (I really wish I would have put some real money in that stock). I think that the energy sector might see a nice rise too, at least in the area of power companies. Oil stocks will also bottom out soon and those are a great deal for a long term investor.

Trust me parakeet. As a former trader, I was running with this one group that was awesome (and thats an understatement) at picking solid little companies that were on the verge of rocking. In one year i turned 40k into 225k and then my head swelled and i started making pick outside of the groups picks and thats when I lost it all. When I was riding high they had the sense to see the internet bubble forming and they were all short on the market.

Great group of guys and if I had stuck with them I would have been a millionaire by now. All they asked in return were gift certificates to outback steakhouse.

The right time to invest in stock?

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