Is nobody recommending buying?

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Sep 30, 2008 11:34 am

I'm still "outside the loop" so this may be a bad idea, but it seems to me that there are some bargins out there right now.  Unless a client is ultra ultra conservative, wouldn't it be a good idea to start buying a little bit every two weeks or so?  I would think you could be saying, "Look, even the best analysts don't know for sure what's going to happen tomorrow or next week, but historically, the market goes down and then eventually it goes back up.  So many stocks are bargins right now lets take whatever cash you have on the sidelines and start bargin shopping every two weeks, that way we're not going all in at once and we can evaluate the market as we go, but at the same time we can start taking advantage of some of these deals that are out there right now." 


 
Sep 30, 2008 12:13 pm

cash out only.

Sep 30, 2008 12:37 pm

There are always opportunites in any market. If you are talking mutual funds I would say don't bother. If you are talking about individual equities, I would say yes. Putting an every two weeks time frame for purchases is not a good idea though, phrase it "when the opportunity presents itself to own a great company at a good price ....."  Your clients deal with you not some mystical analyst. While they may be interested in what the talking heads have to say, they deal with you and trust you to look out for them and their interests.

Sep 30, 2008 2:37 pm
anabuhabkuss:

cash out only.



Cashing out now might be a little late...

Sep 30, 2008 2:39 pm

I'm a firm believer in buying when one has the money.  I'm going to become a broken record on this stuff.   In my practice, we make decisions base upon the clients goals, objections, time horizon, and tolerance for risk.  We admit to not having a clue as to what will happen in the market tomorrow and yesterday's events make almost no difference.  I've lost zero clients in the past few months.  Nobody has made their portfolio more aggressive and nobody has made it less aggressive.  I'm living up to my promise of losing money for all of my clients at some point. 

Oct 1, 2008 1:02 pm

If I tell them to cash out, I'm sending the wrong kind of signal for the long-term mind-set I advise on. Even though I was only in grade school in 1987, I still remember Black Monday. It was one of the worst days wall street had since the great depression. And we survived it just fine. In the short-term, had I told them to cash out (if I were an advisor then), they would have missed out on a significant part of the upswing waiting on the sidelines. I would essentially give them the impression that the market can be timed contrary to the reality of market-timing.

Of course, hindsight is 20/20 as they say. Yet the markets, for all we have thrown at them via regulation, still survive and move forward. Occasionally they reset themselves and it may hurt right now. But the opportunity of tomorrow is still a far better proposition.

Oct 1, 2008 1:52 pm

Hell ya, you should buy! WTF!!!! Buy low- Sell High. Obviously, you need to have a decent investment time frame but yes buy! If you are holding an investment it sucks but if you have cash to invest this is great.



Miss J

Oct 1, 2008 2:27 pm

If you could buy ie Campbells or Coca Cola shares at a discount because of market volatility would you? I would and so would my clients. The company is solid and is being punished because of the market NOT the company.

Oct 1, 2008 2:55 pm

I think it is the time start buying in. There are some great stocks out there on sale, and I love to buy things on sale.

Oct 1, 2008 3:33 pm
IsOldSpiceRightForMe:

I'm still "outside the loop" so this may be a bad idea, but it seems to me that there are some bargins out there right now. Unless a client is ultra ultra conservative, wouldn't it be a good idea to start buying a little bit every two weeks or so? I would think you could be saying, "Look, even the best analysts don't know for sure what's going to happen tomorrow or next week, but historically, the market goes down and then eventually it goes back up. So many stocks are bargins right now lets take whatever cash you have on the sidelines and start bargin shopping every two weeks, that way we're not going all in at once and we can evaluate the market as we go, but at the same time we can start taking advantage of some of these deals that are out there right now."





BTW- "Is Nobody recommending buying" is not proper english.. replace it with anyone..

Oct 2, 2008 11:06 am

When opportunity knocks.....

Oct 2, 2008 11:27 am
BestIntent:
anabuhabkuss:

cash out only.



Cashing out now might be a little late...

 
I was joking.
Oct 2, 2008 12:04 pm
anabuhabkuss:
BestIntent:
anabuhabkuss:

cash out only.



Cashing out now might be a little late...

 
I was joking.



Missed the sarcasm. :P

Oct 2, 2008 12:09 pm

Buying.


Coming into this, we were 10% heavy in bonds off our target portfolios of 40/60, 50/50,  60/40, and we're now going +5% to equity on an individual client basis - trying to use a down market to educate, turn around the fear, and bolster standard asset allocation returns a little, based on market expectations. Honestly, the way bonds have behaved, this may seem like much ado about nothing, but clients are feeling good and we feel connected.