Domino412

How Oversold Are We?

I think there are some very good bargains out there right now. However, you still must be very cautious. This is a very treacherous market since we are where we have never been. I am doing some very small buys 50 to 100 shares of only high quality dividend paying stocks. If the stock does not pay a dividend, I dont buy it. A lot of folks are assuming this market will be back up in a few years. Not necessarily. We may trade flat for the next 10 years. Thats why its important to look at dividend yield. At least youll get something while you wait. Also, some stocks are showing outrageous yields, 10% to 30%. This too may be a trap since I seriously doubt most companies can pay out that kind of cash with the economy turning sour. I look for companies to start slashing dividends which will result in another sell off. Then thats where gold should come in handy. Just be careful out there ! OVERCONFIDENCE is what kills most small individual investors like myself.