Someone asked me, “Howard, you’ve always recommended we ‘buy low and sell high.’ Well, the stock market is low right now. Shouldn’t this be a buying opportunity?”
The answer in one word? No.
You see, the market isn’t low as measured by its high PE (Price Earnings ratio) and sagging earnings, which will only get worse as time goes on. Stocks cannot withstand the major inflation we’ll see towards the end of 2009.
So don’t listen if someone tries to suck you into stocks. They’ll only be trying to get you to play a short-term trader’s game. And that’s a loser’s game.
stick with the long-term trend.
Inflation.
Remember Will Rogers said, “Invest in inflation, it’s the only thing that’s going up.”
The most money made by betting on inflation will be made while the fundamentals are being set.
WHAT TO DO ABOUT IT
FIRST: As hard as it may be to do, cool your jets on the stock market right now. Remember how many “Sucker’s Rallies” there were in the Great Depression? Six. Buying low right now just wouldn’t be low enough.
SECOND, I’ve talked about the great headstart you have over the inflation we may start seeing later this year. Well, you really need to take advantage of that headstart. Consider gold and silver. Consider any important “tangible” you can buy at these pre-inflation prices.
I’ll bet my future that I’m right.
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