Update from the bottom, part II

OK, so now we are a month and a half past my December 16th posting “update from the bottom.” Recall that in that post I was updating you on the performance of the stock market subsequent to my having said a low was reached on November 20th. The closes of the three major stock market indices that day were:

• DJIA: 7,552.29
• S&P 500: 752.44
• NASDAQ: 1,316.12

These three indices have bounced all over the place, and there have been closes approaching these “lows” of November 20th, but none lower. I am not patting myself on the back, but I myself was curious today to see how my prediction was holding up. The fact that we have had closing levels that are near, but not below, these levels is a strong indication that investors are in a holding pattern and awaiting something to shift. Most likely they are awaiting positive economic data. And who can blame them? However, I still consider this an excellent time to be buying either stocks, equity mutual funds, or real estate. All of success in investing boils down to: buy low, sell high. Stuff right now is wicked low.

Thanks for reading!

Jason