Bargain stocks because of "downturn"?

[shinypenny]

A coworker said today's market events means it's a good time to buy bargain stocks.

That surprised me. It felt like a mini-crash to me. Kinda like a foreshock that comes before a big earthquake. But let's say I wasn't freaked out by today's correction....

Since high-yield online savings will not be so high anymore, maybe there is some merit to the "bargain shopping" theory. I'm wondering what people here think of investing more money into the stock market. And if you are, which stocks are you buying?

Inquiring minds want to know. Thanks!!

[rstlne]

I agree that it didn't feel like a big crash. It's far too early to be calling the bottom in the stock market since I don't expect that we'll see the light at the end of the tunnel until 2010. People seem to forget that we still have over three more years of ARM resets to look forward to: bubbleinfo.com - Statistics 2007 - ARM Reset*Schedule

Nevertheless, I've been nibbling on precious metals and also a few income trusts that now yield over 13%.

[rolltimer]

I was somewhat surprised by the Fed's rate cut on 1/22/08. I expected a real bloodbath and, from what I read, that's exactly how 1/22/08 began. Someone has suggested the markets' recovery yesterday after the rate cut was due to investors covering their "shorts" rather than an indication that bottom had been plumbed. I'd like to purchase more GE which because of the diversity of their businesses becomes like a bellwether to the market as a whole. When the market recovers, so will GE.

[1littlething]

I don't think it's truely dropped yet. I'd say wait, wait, and wait some more.

[The Honest Dollar]

Timing the market is a losing proposition. No one knows when we'll hit the bottom. People who were waiting for stocks to slide further completely missed the recovery today. But people who put in money tomorrow may see their investment drop dramatically in value.

Don't panic and pull any money out of the market, but just be prepared for further losses if you put more money in (or you could get lucky and buy at the bottom).

[Anthony Marrone]

Originally Posted by shinypenny

A coworker said today's market events means it's a good time to buy bargain stocks.

That surprised me. It felt like a mini-crash to me. Kinda like a foreshock that comes before a big earthquake. But let's say I wasn't freaked out by today's correction....

Since high-yield online savings will not be so high anymore, maybe there is some merit to the "bargain shopping" theory. I'm wondering what people here think of investing more money into the stock market. And if you are, which stocks are you buying?

Inquiring minds want to know. Thanks!!

I'm pretty sure ING lowered their interest rates for high-yield savings today. I haven't conducted any extensive research (although I'm sure someone will surely blog about who now has the highest rates) to confirm this suspicion, other then logging into my own account to check my current interest rate. I guess this makes the debt payoff vs. save debate pretty straightforward for the time being.