On a Market Down Turn

November 4, 2008 - CA, USA.  For the rich and famous they would be shopping at Rodeo Drive or other high end shops.  But if you are like most of us, you will be shopping when there is a bargain.  If we can do this bargain hunting for our clothes or things that we need in our daily lives, why can't we shop for our investments during times of bargain.

What do value investors do during a Market down turn?  If you are a value investor like me you would be looking for bargain prices during a downturn.  It is not hard for a seasoned investor to realize that there are stocks out there that are selling at a bargain.  The best way to find these bargain stocks is by looking at their net worth per share in relation to the stock price per share that they have.  In addition, if you look for stocks that are paying dividends in a consistent manner and it's net worth value is higher than it's stock price you are even better off. 

A market downturn is the time to shop for stocks that are stable companies that are undervalued.   Most of these stocks are also paying dividends.  These stocks are well known brand names and if you buy them at a bargain, you will see that in one year or so your portfolio value will double or triple when these stocks go back to the value that they should be based on their assets.

So to sum everything up...WHAT DO VALUE INVESTORS DO DURING A MARKET DOWNTURN?  They search for VALUE AT BARGAIN PRICES.

 

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