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- Sep 28, 2003
Been reading up this past week, any personal advice for a new person? Im being as cautious as possible but id love some input
Cash is king. Unemployment is still high and last quarter GDP declined. Coupled with the Dow at 14,000 and I don't see reasons to commit money to the market. The game is to buy low and sell high.
You can buy high and sell higher, it carries more risk though. I don't see the upside justifying the risk. If you do buy stocks, I would stick to names that do well in a bad economy like tobacco (PM), fast food(MCD), and alcohol (DEO) Lately these stocks have been rallying hard and I think it probably has to do with future expectations.
Sometimes buy high sell higher works, sometimes buy low and sell high works. It's all relative to the situation and what "high" is. So there's no real rule in that regard. Cheap stocks can get cheaper, expensive stocks can get more expensive.
Overall market is not going down until the financials do, namely GS IMO. We might see a "rip your face off rally" just to decimate all the bears.
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