http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-again Is It Safe to Buy Stocks Again? The stock market is heading for its third up day after the worst start of the year ever. Is it safe to buy stocks again or is there more bad news to come? Market Watch thinks that it is way too premature to start investing in expectation of a major rally. They say that when you should jump back into stocks is after the market has fallen more substantially. Albert Edwards, SocGen’s perma-growler, thinks the S&P 500 index SPX, -0.15% could drop below the March 2009 bear-market low of 666. He says we’re likely to drop to around 550, a 75% slide from current levels. But the bottom line is that he and his colleague Andrew Lapthorne, head of quantitative equity research, believe that thoughts of bargain-hunting in this stock market are way premature. That 75% stock-drop call fits nicely in what’s been a week of dramatic forecasts, such as RBS’s “sell (almost) everything” advice that surfaced Tuesday. No one seemed to be heeding the doomsters then, as Wall Street rode a roller coaster to solid gains. And a third-straight winning session could be on the cards today. But, the missing piece in the puzzle is a commodities rally. “Until this ferocious speculative attack abates and the leveraged funds start covering short positions, then one of the key pieces of the bullish puzzle is missing,” he said. And that’s as analysts play the “how low can you go” forecasting game for oil. Is it safe to buy stocks again? These folks don’t think so. Oil, China and unrest in the Middle East are all issues that need to come to some sort of resolution in order for the economic picture to get better and provide the basis for a stock market rally.

1. By www.ProfitableInvestingTips.com

2. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
The stock market is heading for its
third up day after the worst start of
the year ever.

3. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
Is it safe to buy stocks again or is
there more bad news to come?

4. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
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5. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
Market Watch thinks that it is way too
premature to start investing in
expectation of a major rally.

6. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
They say that when you should
jump back into stocks is after the
market has fallen more substantially.

7. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
Albert Edwards, SocGen’s perma-
growler, thinks the S&P 500 index
SPX, -0.15% could drop below the
March 2009 bear-market low of 666.

8. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
He says we’re likely to drop to around
550, a 75% slide from current levels.

9. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
But the bottom line is that he and his
colleague Andrew Lapthorne, head of
quantitative equity research, believe
that thoughts of bargain-hunting in
this stock market are way premature.

10. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
That 75% stock-drop call fits nicely in
what’s been a week of dramatic
forecasts, such as RBS’s “sell
(almost) everything” advice that
surfaced Tuesday.

11. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
No one seemed to be heeding the
doomsters then, as Wall Street rode a
roller coaster to solid gains.

12. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
And a third-straight winning session
could be on the cards today.

13. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
But, the missing piece in the puzzle is
a commodities rally.

14. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
“Until this ferocious speculative attack
abates and the leveraged funds start
covering short positions, then one of
the key pieces of the bullish puzzle is
missing,” he said.

15. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
And that’s as analysts play the “how
low can you go” forecasting game for
oil.

16. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
Is it safe to buy stocks again? These
folks don’t think so.

17. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
Oil, China and unrest in the Middle
East are all issues that need to come
to some sort of resolution in order for
the economic picture to get better and
provide the basis for a stock market
rally.

18. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
Is There More Trouble in
China?

19. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
The problem with China’s
economy is that no one knows for
sure just how bad things are
according to CNBC.

20. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
China poses the next big question,
Rogoff said, citing government
opacity and mounting debt.

21. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
“We don’t know what’s going on [so]
it’s hard to know how quickly this
could reverse.”

22. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
Signs from commodities like oil
trading around 12-year lows could be
a reliable test for the health of the
world’s second-largest economy,
Rogoff said.

23. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
“In some sense the low commodity
prices are as much of a measure of
what’s going on as any of the official
numbers.”

24. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
China has lots of foreign currency
reserves but they are burning through
them rather rapidly in an attempt to
stabilize their stocks markets and
make up for massive cash flows out
of the country.

25. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
Obviously it is not yet a good time to
invest in China but is it safe to buy
stocks again elsewhere?

26. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
To the extent that a hard landing of
the world’s second largest economy
would disrupt markets, it is probably
best to wait.

27. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
American Oil Producers
Call the Saudi’s Bluff

28. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
The advent of technology
for fracking oil shale
formations has driven US oil
production up and imports of oil
down.

29. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
The response of Saudi Arabia and
other Persian Gulf producers has
been to increase their production in
an attempt to drive new high cost US
producers out of business.

30. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
This strategy has only been partially
successful and fracking operators
become more efficient and continue
high US production.

31. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
US operators have essentially called
the Saudi’s bluff and eventually
Middle East producers will back off a
notch to let prices rise.

32. http://profitableinvestingtips.com/stock-investing/is-it-safe-to-buy-stocks-
again
As bad as oil stocks look today this
may be exactly the time to invest at
historically low prices, providing that
you are willing to wait until prices
recover.