From Alexander Green, Chief Investment Strategist, Oxford Club:
Here’s a test even a novice investor can pass…
Hand him a chart that shows the performance of the stock market over the last 100 years and ask him to point out the best buying opportunities.
He will invariably point to the low spots, the biggest dips, the bear market bottoms.
You don’t have to be a sophisticated investor or a Wall Street fat cat to recognize three crucial points:
The key to getting rich in the stock market is buying low and selling high. The lowest points are the bear market bottoms. The bottom of a bear market can be recognized only in the luxury of hindsight.
If you buy at some point in a bear market, even if you are a bit early, you are almost certainly doing the right thing from a long-term perspective. After all, the average bear…