Wednesday, January 23, 2008

The Beginning Of A New Bull Market?

With the amazing price action in the markets today you might just be suffering from motion sickness. The Dow traded today in a 600 point range... that's right it was down over 300 points at one time during the day, but came back and closed up 298 points in a flurry of short covering and long term bulls.

Needless to say this is a very good sign... With the fed's decision to cut interest rates by 75 basis points yesterday, news of bail outs for loan companies today and a stimulus package from the US government, we are forming a bottom in the markets.

This January was shaping up to be the worst on record before today... As an investor what you need to ask yourself is how bad was it out there for my company? For most stocks in the mortgage and US banks markets, it couldn't get much worse, but there is plenty of companies out there that aren't really affected by a slowdown. They were just taken down with the rest of the market, and are at bargain prices compared to just a month ago.

Since this blog is all about long-term investments these might be fairly redundant but, Royal Bank Of Canada, Zoltek, Google, Evergreen Solar, Boeing, CECO, Vasco Data Securities and Yum brands are all looking tempting at their levels. If you are a first time investor, or have been waiting on the sidelines with cash waiting to get in you had better hurry. The market is oversold, and it is only a matter of time before the fundmentals and long-term outlooks begin to matter again...

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