Um, let's see: maybe the stock is already at it's lowest point, then investing would be good. On the other hand, the stock might fall even lower, then investing would not be good.
A "good buy" is not one which "has fallen as low as it possibly might", but one which is under-valued. When considering long-term investments, what matter is not whether the stock will go lower in the months, or even years, that follow, but whether it is undervalued.
Chances are, most tech stocks are undervalued these days. If I had any money I'd buy Apple, which is no doubt dragged way below its intrinsic value because of the general downturn.
A good maxim for long-term investors is: if the stock you're holding (waiting for it to go up) goes down instead, re-examine the fundamentals. If the fundamentals haven't changed, buy some more. That should help explain why what you say doesn't make real sense (even though it appears superficially sensible).
"Chances are, most tech stocks are undervalued these days. If I had any money I'd buy Apple, which is no doubt dragged way below its intrinsic value because of the general downturn."
What makes you think so, and why would you be the only one thinking that way. How do you know that Apple wasn't extremely overpriced before and is now seeing the long overdue correction?
I think Apple's been chronically underpriced because financial analysts and the like seem to lack the foresight, over and over again, to realise that when Apple launches a new product, it's pretty much guaranteed to be a hit. Basically, I believe that Apple's products are more awesome than the market thinks, because the market is non-technical on average and so doesn't fully comprehend just how cool Apple's products are, and treats it more like just any other technology company.
I'm not a financial analyst, though, so this is not backed by any data, if that's what you're asking :-)
I tend to agree, but the street hasn't gone into panic mode at this moment. Right now, most people are hoping for a turn around because if they were to sell, then they'd lock in their losses (after all, VMW was worth twice as much ONLY 6 months ago!).
The momentum is to the downside, and I say short if possible because of the fact that there are so many hopeful investors clinging to the idea that they can "make money" in this market (when in fact the best they can realistically hope for is that they break even).
The true long opportunity will be perhaps next September/October when the street is really regretting ever getting into the markets to begin with.
The Reg once posted an article titled "PC Sales Down" while in the first or second paragraph they had the statement, "PC Sales are up 13%" (or something like that, the number's probably a bit off).
I suppose that shows where their priorities lie -- sensationalism.
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A "good buy" is not one which "has fallen as low as it possibly might", but one which is under-valued. When considering long-term investments, what matter is not whether the stock will go lower in the months, or even years, that follow, but whether it is undervalued.
Chances are, most tech stocks are undervalued these days. If I had any money I'd buy Apple, which is no doubt dragged way below its intrinsic value because of the general downturn.
A good maxim for long-term investors is: if the stock you're holding (waiting for it to go up) goes down instead, re-examine the fundamentals. If the fundamentals haven't changed, buy some more. That should help explain why what you say doesn't make real sense (even though it appears superficially sensible).
What makes you think so, and why would you be the only one thinking that way. How do you know that Apple wasn't extremely overpriced before and is now seeing the long overdue correction?
I'm not a financial analyst, though, so this is not backed by any data, if that's what you're asking :-)
The momentum is to the downside, and I say short if possible because of the fact that there are so many hopeful investors clinging to the idea that they can "make money" in this market (when in fact the best they can realistically hope for is that they break even).
The true long opportunity will be perhaps next September/October when the street is really regretting ever getting into the markets to begin with.
Oil.
I suppose that shows where their priorities lie -- sensationalism.