Sunday, March 29, 2020

How to Pinpoint 'Maximum Pessimism'

Here is the article.

Few investment techniques offer better odds than buying world-leading companies when they are very out of favor. That is when they sell at the best entry points.
How, though, can investors know the "point of maximum pessimism" has likely been reached?
Typically, the shares will be making new 52-week or even multiyear absolute lows. Income-producing shares will have what Jim Cramer calls "accidental high yields." Their current yields become historically high simply because the stock price gets really low.


Night follows day. Bad times lead back to better ones. Low oil prices give way to higher ones. SLB is No. 1 in its industry, carries Value Line's A++ financial strength rating and is guaranteed to be around for the next positive cycle.

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