CHESSNOID

It is impossible to know what the bottom will be, but it is best to have an idea what range so you don’t miss opportunities to buy.  After the tech bubble popped, I jumped in and started buying every month using a dollar cost averaging method of all the stocks that I liked.  I think it will be 2 possibly 3 quarters till the market flattens out.

2 strong stocks that I like right now is Google and Apple. Both are tech companies that make money and leaders in their field.  Both are below 50% off their high right now.  Google hit an all time high of 747.24 and closed today at 346.01, while Apple hit an all time high of 202.96 and closed today at 89.16. The DOW hit an all time high of 14,279.96 and closed at 9,447.11 today.  Looking at many of the stock numbers today, it wouldn’t surprise me if the DOW continues downward to the 50% mark of 7,000.  I know that is a scary to think about, but if these 2 great tech companies have been that hard, it is not a reach to think that the 30 stocks that make up the DOW won’t reach those same results.

We lost 500 points today and one day last week, we lost 777 points in a day. One year ago the DOW hit its high and it has already given back 4,832.85. I definitely can see another 2,000 points being shaved off.  For now, I will just watch all the companies I like and play armchair quarterback until I am ready to jump in which will be in the next 6-9 months.