The end of a bear market in the share market will be accompanied by huge volume increases of 4 to ten times the daily average without increases in price. This is when the desperation has set in and people finally cutting their loss's to take advantage of tax right offs. This is when the smart money comes in to buy stocks that will survive the financial mess.The best way to pick a winner is by the old Warren Buffet method of looking in your fridge or to put it another way. What do you spend money on and use, that you will have to keep using even if times get tough.
Food ,clothing and shelter are the staples. Electricity, transport to keep a job, but we will cut back on the excess's we don't rely on .
Now banks on the other hand you can never really see what they produce and if we could live without them we would or move to a safer haven such as a credit society that has no share holders to force it to take uncomfortable risks for ever higher returns. Credit societies don't have to worry about share prices to raise capital ,they just quietly grow organically on disgruntled exbank clients.
There is a system of investing to make yourself cost efficient .That is if you electricity bill is x dollars a year you buy enough shares in your utility that pay a dividend to cover your expense and so on with your phone bill and food etc. Start with the necessities while share prices are low and eventually you will never have to reach into your own pocket again.
This is much smarter than leaving it up to some wizz kid in a super company that you have no control over. As Warren said why would you take advice from someone that takes a train to work if you drive an expensive car yourself. If you buy beer, buy the shares as i am sure you will keep buying beer when times get tough to drown your sorrows. Beer sales actually increase in hard times.
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