Buying stocks in today's market-some questions

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Subject Author Date
Buying stocks in today's market-some questions Darren 07-19-2008
Posted by Darren on July 19, 2008, 1:55 pm
I was listening to a financial talk show on the radio this week (can't
recall the name, but it wasn't one of my regular ones). The host was
discussing what stocks or types of stocks to buy in today's market. He
said buy the ones now that are the most unattractive to you, meaning
ones that have fallen in price significantly in recent months. His
theory is that this is the time to get into these stocks, as they will
eventually rise in value.This would certainly seem like the "buy low,
sell high" strategy, wouldn't it?
Some of the stocks I am considering are Wells Fargo, Pfizer,
Constellation Energy and Proctor & Gamble.
Any thoughts or commenst?

Darren

Posted by Lawyerkill on July 19, 2008, 2:13 pm
> I was listening to a financial talk show on the radio this week (can't
> recall the name, but it wasn't one of my regular ones). The host was
> discussing what stocks or types of stocks to buy in today's market. He
> said buy the ones now that are the most unattractive to you, meaning
> ones that have fallen in price significantly in recent months. His
> theory is that this is the time to get into these stocks, as they will
> eventually rise in value.This would certainly seem like the "buy low,
> sell high" strategy, wouldn't it?
> Some of the stocks I am considering are Wells Fargo, Pfizer,
> Constellation Energy and Proctor & Gamble.
> Any thoughts or commenst?
>
> Darren

Yeah, just because a stock has dropped a lot doesn't mean it's a value
at its currect price.

Posted by FrediFizzx on July 19, 2008, 3:25 pm

> I was listening to a financial talk show on the radio this week
> (can't
> recall the name, but it wasn't one of my regular ones). The host was
> discussing what stocks or types of stocks to buy in today's market.
> He
> said buy the ones now that are the most unattractive to you, meaning
> ones that have fallen in price significantly in recent months. His
> theory is that this is the time to get into these stocks, as they
> will
> eventually rise in value.This would certainly seem like the "buy
> low,
> sell high" strategy, wouldn't it?
> Some of the stocks I am considering are Wells Fargo, Pfizer,
> Constellation Energy and Proctor & Gamble.
> Any thoughts or commenst?
>
> Darren

Yeah, just because a stock has dropped a lot doesn't mean it's a value
at its currect price.
========================

Yep, and past performance is no guarantee of future performance. ;-)
Going either way. Most beaten down stocks get beaten down for a
reason. Ya need to know how to properly analyze the reasons.

Fred


Posted by Blash on July 19, 2008, 5:00 pm
Darren wrote on 7/19/08 1:55 PM:

> He
> said buy the ones now that are the most unattractive to you, meaning
> ones that have fallen in price significantly in recent months. His
> theory is that this is the time to get into these stocks, as they will
> eventually rise in value.

What is he doing with his Enron & Worldcom certificates???


Posted by Lubow on July 20, 2008, 1:23 pm
Hello, Darren!

Contrarian investing is a viable approach. Companies with a multi year history
of increasing dividends in good times and bad like the ones mentioned in your
post are your best bet. But like anything else in investing, there are no
guarantees. If there were guarantees you would be expecting a 2% return on your
cash.

Just to be on the safe side, if your investment nets a 20% or more loss (that
includes dividends) cash out of your stock and look at another one.

Lubow.
You wrote on Sat, 19 Jul 2008 10:55:52 -0700 (PDT):


>I was listening to a financial talk show on the radio this week (can't
>recall the name, but it wasn't one of my regular ones). The host was
>discussing what stocks or types of stocks to buy in today's market. He
>said buy the ones now that are the most unattractive to you, meaning
>ones that have fallen in price significantly in recent months. His
>theory is that this is the time to get into these stocks, as they will
>eventually rise in value.This would certainly seem like the "buy low,
>sell high" strategy, wouldn't it?
>Some of the stocks I am considering are Wells Fargo, Pfizer,
>Constellation Energy and Proctor & Gamble.
>Any thoughts or commenst?

>Darren


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