AboutPaul Henneman Expertise Stock forecasting and fair market valuations.
Experience
Past/Present clients CBSMarketwatch.com, Hoovers.com, Multexinvestor.com, Bank of NY, numerous hedge funds and institutions, other partners and clients can be viewed at http://www.valuengine.com/about/careers.html
Question Paul I have never messed around with the stock market but I do know the time to buy is when it is at it's lowest. When do you see this thing turning around after the bailout because you know it is still dropping. And also where would you put your money? Do you know of any good websites to track uptodate info?
Answer Chris,
Thank you for your question! Unfortunately there are no clear answers to your questions. Investing is not an exact science, almost every expert you ask will likely give you a different answer regarding when the market is at its lowest.
The best advice I can give you is to think in long time horizons. If you try to time markets in the short term, you may succeed once in a while, and you will also get it wrong, so may not generated strong returns. However, over time, the markets almost always go up. For example, if you invest today in these volatile markets, you may see a 10% gain or loss within a week or two. No one can tell you for sure which way it will go. But, if you step back and take a larger picture, the markets are clearly undervalued. This means that an investment now has a very good chance of earning strong returns if you are patient for a few years or more. The longer you invest for, the better you will do.
Particularly at times like these investors lose their long term focus. It can be shattering to lose 40% of your investments in a month, this has happened to many investors. But, the markets will come back. Yesterday's great returns may not last, the poor economy and troubled housing industry has a few years to go.
Also, you could take your time and invest a smaller portion of what you have available now, then consider adding to it every three or four months. This will spread your investments out. Certainly if there is any market pull back to about 8,000 on the Dow it would be a good opportunity.
But again, I stress the importance of thinking long term. We do have a free weekly newsletter I would encourage you to subscribe to, you can sign up by going to www.ValuEngine.com and clicking on the "Free Weekly Newsletter" link. This may be helpful in thinking about the markets overall.
I hope this helps, please do not hesitate to follow up with me if I can be of any additional service!
Sincerely,
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com
