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Thursday, July 11 | ||||
Buy Stocks Now
(Dow Jones Industrial Average -- Weekly Chart)
(3M and AT&T)
The Volatility Index popped above 40 today. That's a sign that fear and pessimism have reached a level where contrarian long-term investors get interested in buying stocks. I put up the charts of both 3M and AT&T because they represent the extremes of strength and weakness within the Dow Jones Industrial Average. If you are into buying relative strength, you'd look at MMM; if you are into buying "distressed" shares, then T would intrigue you here. Some Thoughts from Warren Buffett "The best thing that could happen from our standpoint is to have markets go down a tremendous amount. If you asked us next month whether we'd be better off if the stock market were down 50% or if it remained where it is now, we'd tell you that we'd be better off if it were down 50%. We're going to be buyers of things over time... We buy businesses. We buy parts of businesses called shares. And we're going to be much better off if we can buy those things at attractive prices than if we can't. We don't have anything to fear. What we fear is a long, sustained, irrational bull market." "Be fearful when others are greedy and greedy only when others are fearful." "Unless you can watch your stock holdings decline by 50% without becoming panic-stricken, you should not be in the stock market." "Remember that the stock market is manic-depressive." |
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