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Originally Posted by Hey You . . . I Know You!
Hey, great advice! Buy low, sell high! I never thought to try that! Since I know when the bulls and bears are coming, this should be a SNAP!
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If you are not able to identify a bull, that's not my problem.... I can. (hint:stock charts)
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Originally Posted by Hey You . . . I Know You!
If you can't justify the valuation, then you are not "investing."
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Really?!? Is that a fact or just your uninformed opinion? Know anything about charting or technical analysis?
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Originally Posted by Hey You . . . I Know You!
The better able you are to justify the valuation, the more likely a stock will increase in value. Sure, sometimes investors drive up the price of a particular stock based on expectation and excitement, but the stock price will always corrects itself. Nothing can stay overpriced forever. If you invest in a company knowing that the current stock price is valued at a potential future value (based on expected earnings, etc.) you are asking for a beat down. You just gave someone else a bank full of money while you hope beyond hope that you can fool the next buyer into paying more than you did. Again, I say, it could happen . . . it is just not a very smart thing to do.
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What a bunch of regurgitated drivel..... sounds like you read it on a message board somewhere.
Firstly, the 3 hours you spend online investigating a stock will get you about 5% of the information that the big boys have, who actually move the stock.
In a bull, the stock or sector is growing... PE ratios almost always run ahead of the rest of the market.... largely due to the fact that the growth of the company's sales is also factored in (i.e. the PEG ratio)
Also, stock movement usually LEADS actual company results... so by the time some event happens in a company, it is already priced into the stock.