Much as I am often sceptical about analysts, I am inclined to agree with them on this occassion - this is the time to be buying stocks. Even the usually pessimistic Michael Lombardi is using the opportunity to load up on stocks, and announcing that "the bear market rally is not yet over".
In an article headlined "Time to buy stocks and ETFs: Analysts" in today's Straits Times, analysts argued for buying stocks at these gloomy times. This is because stocks have been badly battered due to the Japan earthquake. However, the fundamentals of companies are still fine, and many companies may just got hit a bit too hard. Analysts recommend buying especially stocks that are set to recover from Japanese reconstruction efforts such as oil and gas, construction as well as equipment and materials suppliers.
I do not know when the stock markets will recover (actually the local stock market is already entering a bear phase even before the earthquake), but I am a buyer in these times. What have I bought? None other than the Nikkei itself and loads of local bluechips (Noble, F&N, SGX, NOL and GLP). I am secretly hoping and believing that the Japan Earthquake will be the catalyst to jumpstart things in Japan and the rest of Asia, therefore, fuelling an end to the baby bear market we are experiencing currently. But I am a mid to long term investor.
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