'You Can't Go Wrong': Stocks Still Cheap, James Altucher Says

Unemployment is still on the rise. (Not the same as new claims) Discretionary income is on the floor. No new jobs being created. Foreclosures and consumer debt defaults still accelerating. We are in "economic reset" mode, where everything will go down to it's TRUE VALUE, based upon asset value divided by number of shares. Long way to get there still, when you have the FRB loaning cheap dollars to "investment bankers" to keep markets artificially pumped up to try and gain a GOP president. HAHAHAHA. Only feminists will vote for a woman in the #2 seat. All other women know inside just how reactively insane they can become at times and will not elect for someone that has may one day literally have the power to destroy all civilization. Mc Cain shot himself in the foot here. One aneurysm, coronary, or stroke and we have a "stay out of my way or I'll kick your butt" diplomacy style with her finger on "the button." Politics has become completely insane. RA RA RA Sis Boom Bah. Buy stocks because they are cheaper THAN THEY WERE. Oh boy !!

More propaganda from wallstreet. Of course they want us TO BUY so that their "real" clients (banking clients) can sell. These people need to quit misleading the Americans who don't know any different. The economy is in trouble and good old James knows it and many others on this post. People are on to the media trying to sway the public's actions. The bottom line the economy is going to get worse in 2009.

I love these maroons. They love to put in their 2 cents while thry are playing ith other people's money. I want to hear from someone who is investing their own bucks. At least they would be saying something from a real life experience.

LOL is guy is a fool!!! Yes, it will go up but when?

He's right. Stocks are dirt cheap. If you can think beyond CNN's doomsday article of the week, you'll make big money. Anyone with a 5 year view should be buying. Now. But of course what will happen is, the market will zoom up for 2 years, and THEN people will invest. They will lose money, then blame "the corrupt system", or "George Bush" (yeah, they'll still blame him in 2 years, or 20, or 200)

Howard Johnsons RIGHT

Is this the kid I used to beat up once a week just for being a geek? Buy stocks now, only for the very long and most people will be dead thirty years.

Homeowners no longer have ATM machines attached to thier homes. THAT is what was driving the economy for the past 8-10 years except for the tech boom years of 1999-2001 and we all know what happened there as well. It's back to the 80's my friend.

I agree with James that the overall market is cheap- especially if you stick to solid companies. Of course, it may even get cheaper going into the election, so for conservative investors you may want to dollar cost average into positions or use covered calls. I recently wrote blog articles on some cheap stocks- OI, AXP, SYY, BRKA. Or just buy a good closed end fund at an above average discount to net asset value- ADX, USA, JQC. George Spritzer Quant Investor quantinvestor.blogspot.com

That's a really bad idea, Jane. You are falling into the classic trap of taking your money out of stocks when the market is bad, and putting it back in once everything looks rosy again. This causes you to sell in troughs and buy at peaks, which is exactly the opposite of what you want to do. You're only taking that 15-20% cut if you panic and sell before the stocks go up again! Any 401K money that you can't leave alone for at least a 10-year horizon should be in a money market to begin with.

Stocks may get cheaper, but they look damn cheap right now. Cheap even now at 20-30% off the bottom. I believe this market will go side-ways to gradually up until we get a better picture from the banks next quarter. I am worried about some of my Reits buying the bank's bad debt at a huge discounts. When oil was in the 140's. I was buying the most heavily beaten down areas - banks, airlines, paper related and placing my shorts on rig, xom. I have since sold 80% of my airline position. I believe the market will come back down in the near future. My main reason is there were not enough bank failures. I believe when the oil money starts buying up our collapsing banking system we should look to get into banks for the long haul.

And now the US$ is going up. Oil and gold going down? Supported by higher interest rates and eventually higher taxes. The opposite of what has been happening for the past 6 years. Very bullish for stocks. I say publicly and short privately. The sales never end. Is it time for another bank to go belly up?

What a toolbox. Low P/Es mean nothing if there isn't growth to support a higher P/E in the future. MSFT! GE! are you kidding? They are trading at the same price they were 5 years ago. Look at a chart and get a haircut. If you want a nice stable stock that pays a reasonable divi fine, buy, GE. But to think that housing issues and sub prime are "priced into the market" just wait and see. None of us knows what's on the books of the FINs and the fit has yet to hit the shan, and will take the whole market lower with it.

Remember cheap does not mean it can't get much cheaper.

Have fun watching the video without sound. They look like a couple of Talmudic liars.

GEE! I have saved up $30,000 cash working at McDonald's flipping burgers its in a C.D. until 1/14/09 I wonder if I should just dump it all into stocks? at $6.43 a hour it took a long time to save up $30,000! but the C.D. only returns 3.94%

jane122653: The market (sp500) has been down about 8% over the last 4 months, hardly your -14% that you suggest. How about this, the common investor, such as yourself - takes money out when they shouldn't (ie from oct07 until apr08, when you took your money out, the market was down over 10%) this is where market timing hurts the "small investor"... you have to realize that investing is a long term commitment and over a long period you win, and when the market stabalizes is usually after you put your money back in b/c the market has already rebounded. Hope this helps...

Is this guy played by Mike Myers?

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can someone tell me what stocks to buy so that I can get a good turn around withing a week or week and a half?