Sunday, December 2, 2007

How Investors might ride out the market malaisa

--Is stock market taking a turn toward recovery or repeating the history? --Stocks surged last week on a bet of interest rate cut. This wasn't the first time. After credit worries hurt stocks in July and August, stocks rallied on the rate-cut hope in Sept, only to plung again when the credit worries resurfaced. --if you think it is time to start bottom fishing, be prepared to ride it to deeper bottoms. --cheap does not equal value: look ofr distressed stocks with values, such as financial companies with no exposure to subprime --watch lawmakers for opps and bottoms. Regulators often show up late in the game, a potential guidepost to bottoms. Sarbanes-Oxley was passed just a few months before Nasq bottomo in Oct 2002. http://online.wsj.com/article/SB119663796725711104.html?mod=hps_us_whats_news

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