Tuesday, September 23, 2008

Economic related question

since the prices of stocks are down, do you think now is a good time to buy one?

Ms. Banker's answer:

"People who believe that the prices have bottomed, who believe that the fundamentals of the company is good, who believe recovery will come sooner or later (can take years), people who have spare cash, and who probably has no exposure /investment yet in that stock, can see an opportunity in this bearish market.

Biggest restriction is liquidity. People would want to stay as liquid as possible.

They want to make sure that they have money to service their obligations. It’s still very unstable, like what you said, kaya it’s also difficult for people to judge things."

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