Is This 5% Fall A Buying Opportunity?

The markets have fallen about 5% on news that President Obama will try to pass tougher regulations for banks and other financial institutions.

Most of the biggest losers today and yesterday were financial stocks. Is this an accurate loss of their value or is it uncertainty and fear by investors?

Is this 5% fall a buying opportunity?

Tags: 5% fall, President Obama, banks, buying opportunity, regulations, stocks

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Permalink Reply by Nathan Andover on January 24, 2010 at 12:16am
It matters how you play the markets.

If you are a speculator, then yes, you could probably turn a buck after a selloff like this.

If you are an investor, then you have to ask yourself if there is long term economic growth potential for the companies you are investing in.

Most studies show speculation a tough game to play with many losers.
Permalink Reply by James Scott on January 29, 2010 at 7:56am
It also matters what the actual regulations are.

There is a big difference between what a President says and what he can actually get through Congress.

The markets have continued to dip. I'm looking for bargains to buy because I think overall we are on an upswing for the next decade.
Permalink Reply by James Scott on February 4, 2010 at 12:15pm
Markets are falling again today after a bad jobs report. Dow has lost nearly 600 points in the past couple of weeks.
Permalink Reply by Tom McCann on February 5, 2010 at 8:55am
I heard yesterday that a 10% correction is a normal technical event in a market like this one that has risen so quickly.

So maybe the market wasn't responding directly to moves by the Obama Administration or the jobs report, but was instead looking for any reason to have the overdue correction.

If this is a correction, then maybe we are reaching the bottom of the correction?? Maybe this is the buying opportunity of this year?

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