Not too Late to Buy Selectively
What a difference a few weeks makes in the minds of investors. In September, more people saw a greater chance of a recession and a market that was headed for disaster. Today, almost as if was pre-arranged, we received two important pieces of positive data on the same day: U.S. third-quarter GDP grew by an estimated 2.5%, while the European Union has agreed to a $1.4 trillion bailout of its financial institutions.
The problem is while many investors waited on the sidelines for this news to sort itself out, Mr. Market was busily bidding up share prices in anticipation. After dropping to $14 a share, industrial titan Oshkosh (OSK) is now trading near $21, up nearly 50% in less than a month. The mining and construction equipment company Terex (TEX) dropped to as low as $9 on fear and it now trades near $17, up nearly 100%. Keep in mind, these are well-known, quality businesses, not fly-by-night small-caps....370 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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