Stocks are cheap. Way cheap.

[theogt]

For a comparison, historically, the S&P 500 has had a P/E ratio of 15-25. A P/E ratio is a ratio of the price of a share of stock in a company over its earnings per share. The higher the ratio, the more "pricey" it is. The lower, obviously, the cheaper it is.

http://static.seekingalpha.com/uploads/2008/10/8/saupload_lowestpes_1.png

That's just nuts.

[BrAinPaiNt]

So is my bank account and spending ability.

Care to help a brother out and get me started by supplying some money...heck you give me the startup money and I will let you prove your wizardry to me by picking the stocks.

Heck I might even give you a percentage of the money I make.

Heck play your cards right I might even take you to a motel six, have an ugly woman give you a cheap massage and let you play croquet with the money you give me and we can write it off as a business trip.

:laugh2:

[ScipioCowboy]

Theo, is it your contention that I should be buying stock in droves right now?

You're going to have use very concrete terms here. As a commie pinko, I'm competely befuddled by the nuances of a capitalist system and the complex jargon thown out so effortlessly by you Wall Street expert types.

[zrinkill]

If you see a companies stock drop that you know will eventually recover.

I would buy if you can afford it.

Matter a fact ..... I am.

[theogt]

Theo, is it your contention that I should be buying stock in droves right now?

You're going to have use very concrete terms here. As a commie pinko, I'm competely befuddled by the nuances of a capitalist system and the complex jargon thown out so effortlessly by you Wall Street expert types.I'm not offering any sort of financial advice. :)

[masomenos]

If you see a companies stock drop that you know will eventually recover.

I would buy if you can afford it.

Matter a fact ..... I am.

Yeah, it's a good time to buy for those who have the money to do so.

[joseephuss]

I'm not offering any sort of free financial advice. :)

Go ahead and take a commission.

[Temo]

They're low in anticipation that earnings will drop. If you don't think earnings will drop as much as the market is predicting, then buy. Otherwise, don't. Or unless you're planning on holding for 10+ years.

[theogt]

They're low in anticipation that earnings will drop. If you don't think earnings will drop as much as the market is predicting, then buy. Otherwise, don't. Or unless you're planning on holding for 10+ years.Even if earnings on these companies are cut in 1/3, they'd still be reasonably priced.

[adamc91115]

I've been starting to look around for some stocks to buy. I still think the market is going to drop a little more before it goes back up.

[theogt]

I've been starting to look around for some stocks to buy. I still think the market is going to drop a little more before it goes back up.Yeah, I've said that before here. Hard to time the exact bottom, though.

[adamc91115]

Yeah, I've said that before here. Hard to time the exact bottom, though.

If I see the DOW tick below 9000, I'm calling that the bottom and buying.

Nothing too huge, but maybe a few hundred here and there.
Something that pays dividends that I can hold for 5-10 years and see where its at. Maybe decide to hold it even longer.

[Temo]

Even if earnings on these companies are cut in 1/3, they'd still be reasonably priced.

A more than 1/3 cut in earnings is not unreasonable in a deep recession, which is what many are predicting. Not saying that's going to happen, but it's reasonable.

Myself, I'll be investing in a couple companies (already bought GE, before Buffet bought in) that I think are safe bets to ride out the recession. But I don't expect to be doing too much until we get a clearer picture on when (or if?) the credit markets start getting freed up a little.

The financial picture out there right now is very, very scary... more so than at any time since I've been alive (since '86), and possibly since the great depression. Hard to get a good handle on stuff right now.

[masomenos]

If I see the DOW tick below 9000, I'm calling that the bottom and buying.

Nothing too huge, but maybe a few hundred here and there.
Something that pays dividends that I can hold for 5-10 years and see where its at. Maybe decide to hold it even longer.

You should probably just plan on buying tomorrow then, lol.

[Temo]

Yeah, I've said that before here. Hard to time the exact bottom, though.

Most economists would say it's impossible. I know I would.

[theogt]

A more than 1/3 cut in earnings is not unreasonable in a deep recession, which is what many are predicting. Not saying that's going to happen, but it's reasonable.A cut to 1/3 of earnings is not unreasonable. However, a cut to 1/3 of earnings PREDICTIONS BY ANALYSTS would be somewhat unreasonable, I think.

[Temo]

A cut to 1/3 of earnings is not unreasonable. However, a cut to 1/3 of earnings PREDICTIONS BY ANALYSTS would be somewhat unreasonable, I think.

/shrug

Fear is higher now than it's been in a long, long time. There are those who would say to be greedy when others are fearful. But I suppose you don't hear much from the people who were not fearful when they should.

Not that I feel that way about this, I tend to believe that there are plenty of buying opportunities out there right now. I just don't know which ones are the ones to buy.

[theogt]

/shrug

Fear is higher now than it's been in a long, long time. There are those who would say to be greedy when others are fearful. But I suppose you don't hear much from the people who were not fearful when they should.

Not that I feel that way about this, I tend to believe that there are plenty of buying opportunities out there right now. I just don't know which ones are the ones to buy.And as Buffett says, "Be greedy when people are fearful, and fearful when people are greedy."

[Maikeru-sama]

I agree, if you have the money, there is definately an opportunity to make some money in the long term.

The only problem is that you have to know which ones to choose.

[ninja]

Even gas is becoming "cheap" again here in NJ. $3.07/gallon and dropping. I'm waiting for Exxon to come out with their profit report.

It is a good time to buy stocks. Choosing which stocks is difficult.

[ninja]

And as Buffett says, "Be greedy when people are fearful, and fearful when people are greedy."

And Buffet also said, "First come the innovaters, then the imitators, and then the idiots."

[ologan]

If I see the DOW tick below 9000, I'm calling that the bottom and buying.

Nothing too huge, but maybe a few hundred here and there.
Something that pays dividends that I can hold for 5-10 years and see where its at. Maybe decide to hold it even longer.

Same here. I'm keeping an eye on CHK and SNHY. CHK is very cheap for a premier natural gas outfit, and SNHY is just a good old solid performer that happens to be flush with cash.....and has very,very little or no debt! But that's just my opinion. I'm also keeping an eye on a couple others.

[ZeroClub]

If I see the DOW tick below 9000, I'm calling that the bottom and buying.

Nothing too huge, but maybe a few hundred here and there.
Something that pays dividends that I can hold for 5-10 years and see where its at. Maybe decide to hold it even longer.

Hard to pick the bottom. This evening, looks like it could go even lower ....

[adamc91115]

I'm expecting there to be a moderate bounce tomorrow... Theres already a lot of activity after-hours.

I'm buying 40 shares of XL (http://www.marketwatch.com/quotes/xl) at a limit price of $5 a share.
I believe it bottomed out today... It's 52 wk high was $82 a share. Hopefully it will stay low for a little while so I can accumulate some shares with dividend reinvestment.

[Hoofbite]

Even gas is becoming "cheap" again here in NJ. $3.07/gallon and dropping. I'm waiting for Exxon to come out with their profit report.

It is a good time to buy stocks. Choosing which stocks is difficult.

I was driving through a town about 20 minutes from where I live and saw 2.76/gallon. Down about 0.23 from a week ago.

[adamc91115]

I was driving through a town about 20 minutes from where I live and saw 2.76/gallon. Down about 0.23 from a week ago.

And now OPEC is talking about dropping production to stop the prices from going down anymore.

Thats great news! Not.

[theogt]

I'm expecting there to be a moderate bounce tomorrow... Theres already a lot of activity after-hours.

I'm buying 40 shares of XL (http://www.marketwatch.com/quotes/xl) at a limit price of $5 a share.
I believe it bottomed out today... It's 52 wk high was $82 a share. Hopefully it will stay low for a little while so I can accumulate some shares with dividend reinvestment.Maybe not tomorrow, because of the Lehman CDS thing. I'd say there's a good chance next week sees a rally. Unless of course, more **** hits the fan.

[ologan]

And now OPEC is talking about dropping production to stop the prices from going down anymore.

Thats great news! Not.

All the more reason to Drill Here....Drill Now!

[EveryoneElse]

Everytime this happens the market rebounds 20-30%, does it not?

[joseephuss]

It is still early in the day, but it has already dropped another 600 points and is down below 8000.

[theogt]

Maybe not tomorrow, because of the Lehman CDS thing. I'd say there's a good chance next week sees a rally. Unless of course, more **** hits the fan.Ugh...apparently though the Lehman CDS auction happens today, that's just the pricing auction. Actual settlement doesn't happen until October 21, meaning we could see a couple more weeks of frozen credit markets.

[Maikeru-sama]

It is still early in the day, but it has already dropped another 600 points and is down below 8000.

When was the last time the Dow was below 8000?

[joseephuss]

When was the last time the Dow was below 8000?

April 1, 2003

http://www.marketwatch.com/news/story/dow-industrials-trade-below-8000/story.aspx?guid={4CA59430-24C3-4AEC-B3F0-314C024F69DD}&siteid=rss

[hairic]

When was the last time the Dow was below 8000?

I remember it going below 8000 due to the possibility of war in Iraq. Don't know exactly when it last fell below 8000.

[adamc91115]

So far so good...

XL up 35% today. Made a pretty decent profit already.

[theogt]

Maybe not tomorrow, because of the Lehman CDS thing. I'd say there's a good chance next week sees a rally. Unless of course, more **** hits the fan.And here we go....