No one can pick the bottom in this market - but my gut feeling is that it may be closer that a lot of bears think.
Maybe it is not bargain basement territory yet but it must be close to ground floor or lower ground floor.
History has shown that when turnarounds come after such savage bear markets they can be quite dramatic.
Too be out od the market altogether is to miss out on opportunities.
Have some gold stocks (the precious metal is now in confirmed uptrend) as "insurance". This is a MUST in the current climate. Far better than "cash" invested at a measly interest rate.
Also, our major resource stock are as attractive as hell. They will be the first to take off in an economic uptick. And as another poster pointed out ( Towie, I think it was) ... disgrunted US and overseas investors will see our resource majors as very, very attractive and "safe". If that kind of money flows in, expect fireworks.
For my money, you can't go past the majors like RIO and BHP.
Also, major oil stocks, (and some oil specs.) look a good bet. With Middle Eastern tensions showing no signs od abating the oil price looks set to maintain its upward momentum. I like WPL and STO in this environment.
Also NVS, with its diversified oil interests and exciting drilling programme has appeal. Further down the "oil" food chain, there is the restructured BPT with its current drilling programme in the cooper basin. This is a small producer that's been around for yonks and is now poised to generate real sharehoder value.
I also like FGL with their expanding wine intersts in the US ....only a matter of time before this stock turns.
If NCP hits the low $9.00 mark, I will buy up big time.
Yes .... there are bargains out there .... sure. they may get cheaper ... but (and this is my view) you need to be in the market, albeit selectively.
To be out of the market altogether is just plain silly.
Rationalise, your holdings ... sell the dogs and jettison the rubbish to create cash to pick up the baragains.
Have plenty of dividend paying quality stocks in your portfolio. (plus a few specs as "wildcards" in the right sectors)
And, above all, be patient ..... wait ... and wait some more.
History shows that cycles repeat .... and those who forget the lessons of history are doomed to repeatedly make majot and costly mistakes.
This is not a time for blind panic ... rather, it is a time for cool logic.
