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You'll have to elaborate on that. You can easily lose money too. There is more dynamic change in values, yes, so you can use that. But the overall issue is that
by NotSammyHagar 6y ago
You'll have to elaborate on that. You can easily lose money too. There is more dynamic change in values, yes, so you can use that. But the overall issue is that how can one tell what to do because you don't know how the market is moving. No one does.
- giantg2 6y agoYes there is risk. You need a basic understanding of finance so you can look at the metrics like PEG or P/B and financial documents like the balance sheet. Then the only real question is 'do you see the company thriving in 5 years'. For example, during the dip you could buy Disney for $87 or Shell for $29. They should go back to thriving and should double in price in the next 5 years. You can also buy put options on companies that you think will fail or drop significantly (like AMC). The other thing you can do is play the odds. Almost everything has been going up since the dip. So you have a much better chance of picking a winner. Another statistical advantage is that you do know which way the market is moving - up. Over the longterm, the market only goes up. The Fed's QE and easy money is greatly helping.