Investor's Circle

A forum to share advice, ideas, and investment suggestions. Featuring Stocks and ETF's and Supporting Literature

Wednesday, May 09, 2007

An Efficiently Value Orientated Bull Market

Mark my words. This Bull Market as all Bull Markets will end, hopefully many years from now with a crash. However, this Bull Run has the chance of being the most value orientated run in history. People will look for bargains. They will buy up stocks that has a good earnings outlook. Growth stocks will not, and should not fuel this market. However, unfortunately, the trend has been of late that growth stocks are outperforming their value counterparts. This was the downfall of the last crash. Reward a profitable company, not one with a speculative future.

When investors see that a stock is trading way above its earnings, sell, and look for the next value. For then, the stock that was a value, will have a chance of becoming a value again. This could truly be a self regulating market. Let us fuel our market not with the hope for huge gains, but with the realization that we can make some money and not loose a lot in the end.

Think globally too. One market is connected by another nowadays. Global markets have been helping our own for a while now. There are some great stocks and deals overseas. Look for them. Diligent research overturns some fantastic buys.

Remember, do not follow the herd. Because the herd is usually running from something that wants to eat it. Be different. Look for value in different places. You may not look cool now, but you'll probably be, where others wish they were.

giulio

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