TOPIC: The Economy

Just some thoughts to share with you regarding the economy:

-- This is the kind of environment in which fortunes are made.
-- Wait until the current emotional contagion is finished before you decide how to get in.
-- Possibly late this afternoon, but likely not until early next week, is the time to buy.
-- What you are looking to buy are companies with good dividend histories, good earnings histories and a historically respected name.

     The current economic climate is an emotional one, driven by weaknesses that were built into the financial sector.  These weaknesses were built in during the 70's and exacerbated in the 90's.  The piper is being paid now for the idiocy of those decisions (inspected any foreclosures lately?).  But those things are happening now, hitting the fan now, and not indicative of our strong economy.  The financial sector is driving down the economy generally due to psychology, NOT fundamentals. 

Credit is certainly the issue.  And this spreads throughout the economy.  But the fundamentals of the economy are strong.  Fundamentals are defined as:  freedom of exchange, goods and services produced, diversity of product, the ability to offer services and the skills of people like you and me.  As long as we are allowed to function unfettered in what we do best (see my previous post about socialism creeping into the inspection industry...) we will do it.  So will other service companies.  Our service is one of billions of things that drive this economy.  Are you trying to drum up business?  Are you trying to improve your product?  Are you trying to improve your skills?  That is a fundamental!  If you hear anyone say that the fundamentals of our economy are not strong, they are playing on ignorance.  Ignorance is the biggest problem our country faces.  And ignorant people vote...

Don't listen to the media.  They are a part of the problem, with the intent of driving things down further because they think that will benefit a certain candidate.  They play on and drive the emotions of the ignorant.  They want you to think that all is lost.   :'(

It is not.

What SMART investors look to do is buy low and sell high.  Notice how they say on the news that people are buying gold.  People are doing that because they think it is a safe hedge against future economic disruption.  But gold is historically high right now.  I bought a boat load of gold in 1997 - 98.  Do you think I should buy now or sell?  I have made so much profit, on paper, from my gold, I am going to sell off about 10% of it, probably Monday or Tuesday.  That gets me back my original investment, maybe more.  The 90% that is left will remain the nest egg I bought it to be, and it has cost me nothing!  No matter what happens to the price of gold from then on, my nest egg is pure profit.  Can you say Bingo?   

But look at how emotions are driving people to sell low and buy high?!  The market is driven by one of two things - greed and fear.  I hear them on CNBC say how stock holders are running for the door to sell.  Why?  Their stocks are low!  Selling is the opposite of what they should do...  They are selling low, and driving stock prices down further.  Then, THEN!, it is time for you to buy.

You will see that when the market comes back, it will come back big.  Buy in the trough...  ;D

Man you hit the nail on the head.  First thing I hear come out of my cousins mouth was "maybe I should sell".  I told him now is the time to buy buy buy!!!  I then proceeded to explain the "buy low sell high" philosophy.  You know, the one everyone has heard a hundred times.  I think I even saw his eyes glaze over as the words went in one ear and out the other.  lol  I just tell myself not everyone is meant to be a millionaire and I go to sleep at night. 

I've been buying all week!

Is good all this...

By the by - buy!

Or is it buy the buy - bye!

Anyway you look at it, buy!!

Speaking of buy, Jay what is your thoughts on nanotechnology?  Ive been thinking that this is going to be a great tech in the future and have pondered researching and buying into some co's that focus on it.  I think it would be kinda like digging for diamonds right now.

Problem is, what do you research this early on in such a new technology?

I have a trading software system that I utilize to evaluate stocks and stock trends.  I have many nano stocks that I have looked at, but the there are few companies really popular enough to generate demand for the stocks.  You are right, it is new and right now like digging for diamonds.  When something hits you will know it, but the technology is coming!