How do you know when a stock becomes cheap enough for you to buy?
I've had a few readers and friends ask me what my plans are in the current stock market climate. Inspired to start investing after reading my blog, a few have even made their virgin stock purchase, after seeing that the prices have hit their 52-week low.
While that can often be a good signal to buy, but let us also be mindful that this is not a golden, sure-win rule when it comes to the world of investing.
In a bull market where prices tend to trend upwards, then yes, the 52-week-low prices can be a good entry point. However, the tides have changed, and we're now officially in a bear market. In a bear market, prices tend to fall. It is not surprising to see prices tumbling to below their 52-week-low or even their IPO ......