Im thinking of buying some General Electric stock. Has anyone else made recent investments on companies they feel are undervalued?
I think the markets have stablilzed for the time being...
I do not think it has hit bottom. It is still reacting to rumor and stupid analyst opinions. GDP, unemployment, and many, many other indices must stabilize and begin to show strength. Too many people are way too scared to get back in. Typically, I will buy with "mad money" but not now. Everyone is looking at past trends but failing to take into account that we have never before had this type of recession caused by credit abuse on a gargantuian scale. Even the Chinese are beginning to wonder if they should loan us any more money. If that dries up you better have every dime in cash. I don't know how they can possible expect consumers to start spending beyond their means again with only $13 extra each week, having just watched both their savings and home values shrink by 50%.
The market, when it starts to go up may indeed go up fast but it will come back down twice as fast again. It is a reactionary market not based on fundamentals but emotions.
GE? Nope, they have been in trouble for some time now. Think of things that people will always need, like health insurance and food (Wal-Mart). Problem is, from what I have observed, the gains this past week were made at the expense of what usually are good sectors. Instead of people buying up everything, they are simply moving things around. Another sign that it just is not over.
Add to that the fact that they are just beginning to look at further regulation. When that kicks in, there is no way the market will even come close to what it was at before, at least not in several, i.e., 5 to 10) years. PLUS, because our government is going further and further into debt, we will have to work until the day we die just to survive when things to kick around and inflation jets sky high along with taxes.
Now, if you are real young and have "mad money" lying around, sure, go ahead and invest because your down risk now is not nearly as bad as it was the end of last year. However, I still think it has further to go down, say DOW 5000 before things will kick back in. I'm staying out of stocks for the time being.