Should You Buy Back Into the Market?

I admit, to jump back into the market today you would have to seriously "grow a pair" as big as an elephant! There is still more room for the market to drop apparently another 9,000 points! Logically, if you are a wise investor you can start to see the opportunities that are unfolding before you. There are bargains that you can buy into for a pretty sweet deal and you should consider picking them up while they are so low. Consider buying for a long term horizon.

The Stock Market is a leading indicator of the economy in that it precedes the economy by about three to four months. Analysts believe that we will see a decline in the Gross Domestic Product (GDP)for at least two quarters. Technically this spells out, can you say it as a whisper,--Recession. The definition of an economic depression is if it prolongs into years rather than just a few quarters.

So, should you start buying again? You should start to see the market bottom out and heading back up within the next couple of weeks to a month, so if you want go out and grab some bargains do your research and make sure that the stock is sound and that there is solid management and good prospects behind it. Be proud of your cojones amigos!

Where Should I Put My Money Now? Investing In A Rotting Stock Market.

1. 
   
   Even if the economy slips into a recession or slows to a crawl, there are certain industries that statistically have proven themselves to weather the storm. Don't think about the profits that were made yesterday or last year, look forward and long term. The economy for the year 2008 is expected to slow down considerably but, it will also will also come back in 2009. As the economy shifts you can expect the stock market to precede this slow down by one to three months. By the middle of Summer you should see the stock market rebounding as investors anticipate a better economy.
   
   Historically there are investment areas that do well in a bear market. If you are concerned about the economy and your portfolio, here are the best industries to invest in right now that are the least vulnerable to a slow economy. Think Basic needs like retail food, tobacco, soft drink manufacturers, cosmetics, utilities, pharmaceuticals.

Also Consider investing in companies that are doing business with China and India. China and India still have the hottest economies on the planet and their growth is expected to continue at a very lively pace. GE and IBM have both brought in decent profits with their collaborations with Chinese businesses. Also software should do well this year.