Buy Low

Published on: 2011-08-08 22:11:55

 

Buy Low, Sell HighWhen things look the most gloomy in the markets, it can be a great time to buy stocks (or better, trade in ETFs). If you go back to nearly any major stock market crash, the period that followed was a great time for investors that purchased low.

For example, in the drop following the Lehmnan brothers debacle in 2008, the market was the Dow Jones Industrial Average was down around 8000. It steadily grew over the next  2-3 years, that number increased well above 14000. Those who invested would have nearly doubled their money in just a couple of years.

We are in another window of opportunity that probably won't last long. The market may drop a little more this week, but increasingly as you buy, the chances of 30%+ growth on your money over the next year or so are very high.

The old adage of "buy low, sell high" can be good advice, and when things look glum, it can be the best time to plan for sunshine ahead.

Best wishes to all! 

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