BUY STOCKS LIKE YOU BUY GROCERIES!

Great out of the box thinking when it comes to buying stocks! Top article!

The Truth On Common Sense

Over the past couple of days, the global stock markets seem to have turned-up from the dismal decline of the first two and-a-half weeks of the year.  Today in fact, the Dow Jones Industrial Average closed up by 211 points and NASDAQ, which has been beaten-down even more, was up by 110 points.  Perhaps it is a little early, however, to assume that stocks are out of their stupor yet; but, we can certainly hope so.

Last Friday, a doctor that I often discuss the financial markets with, told me that his broker has been suggesting that he buy some stock in Amazon.  That brings me to the Stocks and Groceries analogy.  Over the past year, Amazon (AMZN) and Netflix (NFLX) have doubled in price.  Does that mean that they are good buys now?  Remember that brokers make money when clients buy or sell; but, not when cash just sits…

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