The Most Important Question - How Low Will the Stock Market Go?

This of course is a prevalent question with all thethe cash or desire to put their money into more
volatility that surrounds the stock market today.secure sectors. While all this is happening there are
While some people are shouting get out, others areunprecedented opportunities presenting themselves?
talking up the market. Of course when it comes toThis is all the more reason to exercise due diligence
receiving any advice one should always note whereand not react on every piece of news that comes
the advice is coming from.out of the market. It is better to leave that to the
There is no question that we face challenging timespundits and analyzers, since generally speaking that is
and as consequence there is more risk involved whentheir job.
investing. With that said, risk often meansIt is hard to know exactly right now how low the
opportunity. Every new business that starts up hasmarket will go, but one thing to remember is this.
downside risk, yet that does not mean that theyWhile we are in a downward cycle there is plenty of
should never get started.evidence to suggest that this will change over time.
We also know that generally the higher the risk theHence the use of the word "cycle".
greater the return on investment, if the companySo if you can invest over the long term then you
makes it. We also know that today there are a lotcould be looking at some great returns in the future
of bargains to be had. Many stocks are being wayregardless of weather or not we have hit the floor.
oversold and their true value is not being recognizedAs a consequence it may be wise to invest in
due to the volatility in the market place.companies that are financially sound and have
Many people are selling just to liquidize as they needproduced solid results over the long term.