International Writers Magazine:
Sweet Aroma of Value Investing
is a sweet aroma in the air flowing from many individual stocks
in almost every sector of the USA stock market. The latest stupidity
coming out of the negative mouth of so called stock mavens is...
"How do we know what a stocks PE (price to earnings) will be
worth in the future."
there is no doubt that we are in a recession right now and it may get
worse in the coming months. However, with PE's at historical lows, only
folks who believe the end of the world is near will talk about PE's
that may never go up again. After all is said and done, here is an example,
from many questions, a six year old will have no difficulty answering
but may stump clever negative experts who cannot see the woods for the
With three million people in the USA... Will digital TV
take the place of analogue TV in February 2008. If so, which companies
make the insides of the flat screen TV's and how low are their stock
With six billion people in the world ... Will people in
work stop buying computers, and cell phones? Also, who are
the companies that make the best? Also who are the companies that provide
the best service and do any pay good dividends?
Will people still need to put gas in their car and how cheap
are the leaders in that industry?
Will people still need to eat, if so, how cheap are stocks
in that industry?
Will people still be living in houses in two years time,
will their circumstances change and will they need to move to bigger
or smaller houses... Or do you think houses are going to disappear?
These questions are only a small sample of many. They may seem a little
dumb to a six year old but clever experts are giving their negative
slants as though people are going to stop enjoying themselves with all
the modern day trappings. Money may be only the icing on the cake for
describing a successful lifestyle but people will always have a sweet
Most folks will still have a job in six months time and the mayhem and
confusion will pass. The smart people who understand you have
to time the market to buy low and sell high will be enjoying the aroma
of prosperity that started when they bought stocks from a low point
and averaged down if the stocks went lower... They also understand when
to sell them when the stocks reach a level that they are satisfied with
without waiting for a home run. The time to sell is usually when the
doom and gloom experts all start to say it is time to buy because the
future looks bright and the PE's are trading at the low level of 18
times future earnings ... Enjoy Sweet Aroma of Value Investing!
International talk show host Michael Levy, is the author of eight inspirational
books. His new book "Paradise Grace's A Simple Mind." will
be published next month by a top notch publishing company.
© Michael Levy Oct 25 2008
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