Many "dip" stock buyers have been lured into buying more stocks as the bear market rallies continue, The market starts moving up and many are drawn into the "Siren of the Sea". Unfortunately and in short order, the markets fall back to even lower levels.
In these types of markets, it is important NOT to evaluate stocks based upon relative values using prior market prices. Evaluating stocks based more on company fundamentals and operating conditions is very important. Fundamentally sound stocks WILL "take it on the chin", while stocks with weak fundamentals will likely take huge hits - possibly even bankruptcies.
Know your values as it can be one of the best times to position for future success. It will require strong commitment and patience. We have had a very long period of continually rising stock prices and the downtrend will be in the drivers seat for some time to come. It will be a stock pickers environment.
As for the siren of the general market, make sure that you are tied tightly to the mast. The siren is alluring and can be dangerous to your financial health.
Be smart, be well-read, be aware and be successful
"Patience will benefit you in every hour, every time and every opportunity. It helps you to overcome your opponent, howsoever strong he may be. It will help you in times of distress and hardships, in battles and in war and peace.“
