Early in the Bull Market: Be Ready to Buy when Market Leading Stocks are On Sale
By
Paul Goodwin, Cabot Analyst and Editor of
Cabot China & Emerging Markets Report 2/1/08
If you’ve been really paying attention to the market, you have been heavily in cash for weeks, and the few stocks that you have left in your growth portfolio are all either sitting on fat profit cushions or are on very short leashes.
And the worse the economic chaos gets…and the lower the market goes…the better you like it.
Because you know that riding out a bear market in cash insulates you from market losses and gives you the capital to invest when the market turns up. And the best money is made by the people who get in early in bull markets.
Think about it. When the market has been healthy for quarter after quarter and stocks have been routinely blasting out to new highs, that’s when the sheep of the investment herd get into the market. Timid investors only poke their noses out of their shells when bull markets erase their memories of previous market losses. The only problem: Chances are when that happens, the markets are getting near their top. And while the sheep who watch yesterday’s market results are opening up their piggy banks, the real investors—the ones who are looking at where the market will be in six months—are already taking a few profits and getting ready to bail out.
That’s why I say that the real hard-nosed, hard-headed investor watches market turmoil and smiles as stocks get cheaper, the bargain bins fill up and the potential leaders of the next bull market start to hang the sale signs in the window.
To get in early, you have to be prepared!If this is what the world looks like to you, now is when you should be subscribing to the
Cabot Market Letter! Because this growth stock letter is heavily in cash and is building its watch lists of stocks with great numbers and compelling stories right now!
It’s time to make the real contrarian move and start to work making money when the sheep are huddled together for comfort. It’s the genuinely smart investment move.
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