Stock prices are in the toilet. The market keeps flushing that toilet though, as prices continue to drop.
But if you wanted to get in, now is the time!
Remember me talking about J. Crew killing me with discount e-mails? Well, I happen to shop at that overpriced retailer often, waiting for sales and using the rare coupons or discounts I might get my hands on.
So guess how hard I slapped my head after reading the news that J. Crew's stock went up 10% and the retail site crashed after word got out that the First Daughters, Malia and Sasha Obama, wore specially-made J. Crew clothes to their father's inauguration.
I thought about how I was joking with my friends about Michelle's yellow-green outfit (which I thought she looked great in) saying "Is that from J. Crew too?" If you don't remember, she wore a J. Crew twinset when she was on Jay Leno during the campaign. I thought, jokingly, I should buy stock in J. Crew then.
But that's the trouble with buying individual stocks on a whim -- if you don't really know what you're doing, it's a gamble. You might have better odds at the Black Jack table.
And retailers aren't the place to park a lot of cash right now. There's a bunch of popular ones that may not make it through 2009.
Still, it begs the question, why shouldn't I do some research and pick some stocks to buy now while they are dirt cheap? Let's say I was willing to work with $1,000. If I had bought J. Crew stock at its 52-week low of $8.02, I would have gotten about 124 shares for that money. At market close on Thursday, the stock prices was $9.99. So those shares would have been worth $1,238.76. Just like that, I would have made more than $200.
Ok, that's not much money, but think how little effort it would have taken to make it.
I think it may be worth the effort to do some reading and research. Do any of you dabble in buying individual stocks? What do you read? How do you pick?
I know most of your are more concerned with paying off your debt -- as you rightly should be -- but I'm thinking this recession and market tanking is leaving lots of opportunities... why shouldn't us little people get in on it?
Just some food for thought...