No one is pleased with the performance of the stock market at the present time. You might even say that the market is just economically challenged. But, on the other hand, this could be an exceptional time to find some bargains in the stock market among those that are faltering. Today, for example, I noticed that Wal-Mart was one of the only stocks in an upward trend, basically since more people are trying to save money by shopping where prices are low.
During a better financially viable time, higher end department stores will claim the market share. (And, similarly, individuals are looking for low priced stocks that are destined to go up again.) There really are a tremendous number of stocks right now that are hitting rock bottom that will turn around when the nation begins to heal. Value stocks are particularly useful bargains to find in the stock market during a recession.
Technology stocks, such as Apple, introducing their new I-Phone will soar once the economy regains some leverage. The Microsoft Corporation will come out with a new software program (Windows 7) that may result in large gains for their stock. Cisco Systems will probably come back strong as networking becomes more and more common. Just a quick look at the stock market ticker tape will reveal the stocks that are basically “on sale” in this economic crunch.
Try to research whether the companies that you are interested in buying while the cost is low are too profoundly burdened with debt to make a comeback or cannot continue to exist in this economic environment. Otherwise, all things considered, what better time is there to take advantage of the situation by buying shares and holding onto them until things spin around, and they will for some of the downtrodden stocks.
As the Spring season approaches, stocks such as Home Depot and Lowes will have increased sales and an improved bottom line. Therefore, now might be the best time to acquire a few shares of their stock in anticipation of Spring planting and gardening.
Timing is everything within the stock market.
If you already have some of the stocks mentioned, it might be advisable to hold onto them with anticipation of forthcoming growth. And, too, now may be a terrific time to add to the quantity of shares that you own, by looking for a few good bargains on the stock market. The basic theory of owning stock is to buy low and sell high. Now seems like a very good opportunity to do some investigating and buy stocks that undoubtedly will rise again.
The new presidential administration has set a new stimulus package into law that promises to turn the economy around. Patience is necessary, though, as a recovered economy will not happen overnight. Slow and steady growth, however, will result in a much improved picture for stock owners, with developing incentives to regain confidence in the healing of the economy and will bring America back to its feet again.
Caterina Christakos is a private investor and published author. To get more information go to: http://www.highyieldinvestmentreview.com