Comments on: Stocks pummeled as value plays increase http://www.creditwritedowns.com/2008/10/stocks-pummeled-as-value-plays-increase.html Sat, 21 Nov 2009 08:48:41 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Quote of the day: Warren Buffett - Credit Writedowns http://www.creditwritedowns.com/2008/10/stocks-pummeled-as-value-plays-increase.html/comment-page-1#comment-4928 Quote of the day: Warren Buffett - Credit Writedowns Wed, 29 Apr 2009 16:04:36 +0000 http://www.creditwritedowns.com/2008/10/stocks-pummeled-as-value-plays-increase.html#comment-4928 [...] a recent post I said that I was selectively scanning for value plays at this level. A reader asked me the [...] [...] a recent post I said that I was selectively scanning for value plays at this level. A reader asked me the [...]

]]> By: Edward Harrison http://www.creditwritedowns.com/2008/10/stocks-pummeled-as-value-plays-increase.html/comment-page-1#comment-500 Edward Harrison Thu, 23 Oct 2008 09:03:00 +0000 http://www.creditwritedowns.com/2008/10/stocks-pummeled-as-value-plays-increase.html#comment-500 Your last question is why I would buy:<br/><br/><i>"Why would anybody buy anything in this market."</i><br/><br/>It is a contrarian play for a value investment. If everyone is selling indiscriminately, logic holds that some of these sales don't make sense while some do not. Given the indiscriminate nature of the selling and the market crash, I believe there are a number of sectors where stocks are cheap.<br/><br/>Will these same stocks go down another 50% from here? Maybe. Then, you would buy more. After all, you can't time the market.<br/><br/>The right question is: is the margin of error in buying at this price so high that in the long run -- 2 years or more -- I will see a considerable profit. Your last question is why I would buy:

“Why would anybody buy anything in this market.”

It is a contrarian play for a value investment. If everyone is selling indiscriminately, logic holds that some of these sales don’t make sense while some do not. Given the indiscriminate nature of the selling and the market crash, I believe there are a number of sectors where stocks are cheap.

Will these same stocks go down another 50% from here? Maybe. Then, you would buy more. After all, you can’t time the market.

The right question is: is the margin of error in buying at this price so high that in the long run — 2 years or more — I will see a considerable profit.

]]> By: Anonymous http://www.creditwritedowns.com/2008/10/stocks-pummeled-as-value-plays-increase.html/comment-page-1#comment-499 Anonymous Thu, 23 Oct 2008 08:55:00 +0000 http://www.creditwritedowns.com/2008/10/stocks-pummeled-as-value-plays-increase.html#comment-499 I believe it depends on time range, do you plan to hold for years ? in which case why would you buy here...as you said this is bear market, and we have not reached the bottom yet - even in the cyclicals u mentioned.<br/><br/>everything seem to deflate...atleast few more months. And they have not officially declared "recession" yet, so we are may be 30% into this bear cycle - 3/4th more to go. why would anybody buy anything in this market. I believe it depends on time range, do you plan to hold for years ? in which case why would you buy here…as you said this is bear market, and we have not reached the bottom yet – even in the cyclicals u mentioned.

everything seem to deflate…atleast few more months. And they have not officially declared “recession” yet, so we are may be 30% into this bear cycle – 3/4th more to go. why would anybody buy anything in this market.

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