clipped from: marketingpixels.com Penny stock and small cap stock investors may want to get off the sidelines and into the game about right now, if the market has indeed made the bottom many experts think it has. Why? Because the early part of bull markets tend to favor these smaller companies, and by extension tend to reward forward-thinking stock speculators.
The argument against a market bottom already being made are rising unemployment, an economic retraction, and plenty of net losses from major corporations. All are valid arguments, but none of those symptoms have been permanent in the past. Successful investors simply recognize different stages of the market’s cycle, and get in or out of stocks when appropriate.
But just how precise does an investor’s re-entry need to be? There’s the rub - nobody really knows when the exact bottom has been made until after the fact, but nobody can really afford to not be in the market at the exact bottom.
