Enterprising Investor Forum

Take your time… Friday, March 13, 2009

As someone just said on CNBC, no one becomes rich by buying on the 4th up day! Despite the fact that it looks like some risk appetite is returning to the market, the Enterprising Investor should have already made his purchases (if the analysis justified to do so), not dive in now!

Most of the buying so far has been due to short covering and most of the fundamental issues affecting the economy and financial markets have not changed this week. Are some of the banks all of a sudden worth almost double the price they were trading for last Friday? Is there less risk? Do we have more clarity on their balance sheets and their exposures? Hmmm…

Keep on doing your homework but we are extremely skeptical of all those market commentators that are saying to get back in and that the time has come to put money back in the markets. We are still adopting a wait and see attitude and would ideally be ready to take some positions we like but unless something fundamental changes in the state of the economy, we are looking to do so at or below 52-week lows.

Have a nice weekend!