Buying Stocks

The worst time to buy stocks is at a stock market top. This is not the case in October of 2011. During the first week of October, the S&P 500 actually slid into official bear market territory briefly. Then, a big rally took place for three days. Whether the market has really turned around or not, you can probably eventually make money through buying stocks now. We cannot predict the exact bottom or top of the market, but buying near the bottom is worthwhile.

If you want to play it safe, you can buy an ETF stock rather than individual companies. For example, ERX is a triple energy stock ETF that basically goes up 3% for every 1% rise in oil. The fund owns several large oil companies. If you believe that oil will eventually rise, this is the stock for you. 100% gains can be made also if you buy it near the true bottom.