Top 10 Reasons to Buy Stocks Now — WSJ.com

As I’ve said before, now may be a time to dip your toes into the investment pool we call the stock market.

I’m not sure whether index funds, individual stocks, or mutual funds are the way to go (it’s more to do with your individual risk tolerance, in my opinion), but I do know that the market is especially cheap right now.

Not cheap in terms of P/E ratios (they’re high, actually, due to the fact that the “E” — Earnings — is down more that the “P” — Price — in many cases), but cheap in terms of historical prices.

For example, Ford (F) stock is at $5.50. Historically, it’s been a good great idea to buy Ford whenever its price dropped below $10. Now, it’s a fire sale. Will Ford recover? I don’t know. But it always has.

If oil drops in price significantly, you can bet Ford will rise like a Phoenix — AGAIN! — and outperform the market in general. The automotive industry is cyclical. Always has been. Always will.

General Motors just announced that they’re going to free up $15 billion. This cannot hurt their bottom line, and, subsequently their stock price.

Here are 10 reasons the Wall Street Journal gives for buying stock right now.

  1. The big money has already fled the stock market.  
  2. The media is now having a Triple Omygad about the economy. 
  3. Surging fuel, food and commodity prices are causing real economic distress, but they are the result of a global economic boom, not a depression
  4. Short sellers are coming under fire.
  5. Discounts on closed-end funds have skyrocketed to near-record levels.
  6. Markets are not expensive.
  7. Company executives are turning bullish.
  8. We’re seeing some silly prices. 
  9. Ken Heebner, perhaps the best performing mutual fund manager in America right now, is bullish.
  10. Good mutual funds have started reopening to new investors. 

Read the whole story in the Wall Street Journal. Comments? Insight? Share them with me by posting in the Comments.

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