The cheapest investment in an over-valued market may not be a bargain.
The complexity of technology companies and financial institutions makes finding bargains difficult.
Having to be fully invested makes it hard to wait for bargains.
Having too much money makes it hard to find bargains.
Most stocks are priced fairly or too high. You need patience to find stock bargains.
Greed forces to you act on stocks that are not bargains.
Envy of others' gains forces you to buy even though the others may have gotten the bargain.
Lack of business sense to evaluate if a stock is a bargain prevents you from finding them.
In trying to find a bargain, investors cannot know all there is to know. Even if they could, they could only know it about the past and present. The future is unpredictable.
You need to understand not only that the stock is a bargain but why it is a bargain. There may be a good reason for the price being down.
Why do stocks become over or under valued? Supply and demand, investors do not know how to value a stock, margin calls, year end tax loss selling, stock moving into index and index fund buying, window dressing, momentum investing.
Forces that cause stock bargains are temporary.
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