There will be just one bottom, but I won't be able to tell you when until a year or two later : )
The best way to buy in now is to cherry pick stocks that were too expensive and do small buy ins.
I am getting antsy. The buying opportunities are going to be great.
What are you looking at?
I’m not looking at any specific stocks yet, just seeing a climate that is over sold. I need to start studying and looking for the good buys. I’ll give you an example of my thinking though...
The banking sector is being pounded and being rebuilt before our eyes. It is going through massive consolidation. In the end, banking will be dominated by a few huge banks making all the money (IMHO).
Thinking that way, relate it to what happened after the tech stock crash. Consolidation shook out a few big stars. Amazon was the only game in town for auctions and was a great buy. Google was the last search engine standing and was a great buy.
Coming off this banking consolidation, I am looking at Goldman Sachs or JP Morgan as among the last men standing in banking and thinking that, with the collapse of their stock prices, one or both of them will ultimately be a very good buy. I don’t mean anything I can buy this week or this month. But coming off this liquidity crisis and massive banking consolidation, we are going to see the few last men standing, be they GS or Bank of America, whoever, really get huge earnings as they gobble up all of the remaining business.
I’m looking for companies like that. Sectors that are getting pounded and consolidating, I’ll be looking for companies that survive the collapse in their sectors and are ripe to dominate their market.
I won’t know this until we get through the current crisis and things begin to settle down and we know who the clear winners are and who has disappeared or been bought up.
My plan is to put everything in an S&P 500 index fund and then gradually target irresistable buys as they are laid at my feed. No plan goes smoothly, but that’s the plan. Nothing in the next few months as this crisis has to play out before I can get a grasp on the winners and the losers.