Goldilocks and the Running of the Bulls by John Whitefoot for Peter Leeds, Inc.
NEW YORK, (RUSHPRNEWS) August 17, 2007 -Whether youâ€™re a large cap investor or penny stock investor, Iâ€™m going to go out on a limb and presume that most donâ€™t have a degree from Wharton or the London School of Economics hanging on the wall. And really, you donâ€™t need one to play the market.
Listen to the experts though and youâ€™ll walk away thinking that the internal mechanisms running the stock markets are a complicated affair…and that you need a degree in business just to have an opinion.
The current thread grinding its way through the hallowed halls of Wall Street are subprime mortgages, better known as a â€˜credit crunchâ€™.
What is a credit crunch? In a nutshell, itâ€™s when it becomes very difficult to borrow money. If you have no visible means of supporting yourself youâ€™ll probably have a tough time getting a loan. If youâ€™re a bank you may have trouble borrowing on favorable terms. In addition, businesses could be hampered in their ability to invest in new capital and to finance mergers and acquisitions.
But if youâ€™re a corporation or person that can pay off a loan, then there is still plenty of money to be had.
So why the recent sell off? While a credit crunch (and lots of other back burner issues) has the potential to hurt earnings, a lot of the market haywire can be attributed to nervous investors and panic selling.
Again, listen to the experts waft off dire predictions of subprime woes and youâ€™ll think the sky is falling. To be fair, most of us donâ€™t know how many hedge funds will fail because of this, or how many people will lose their homes. And when push comes to shove, we tend to focus on the direst of circumstances. For nervous investors, this means SELL!
‘In these extremely nervous market conditions, economic fundamentals have gone out of the window and panic selling has set in,â€™ noted one analyst.
Which is fine really. If investors are willing to dump stocks over issues that wonâ€™t have any lasting impact on their favorite companiesâ€¦then let them. There are a lot of unruffled investors out there more than willing to snap up quality shares.
Though I have noticed that most of the commotion can be found in the mid and large cap realm. It seems to me at least, that penny stocks have been less volatile than their larger peers.
For penny stock investors, this opens the door to a number of great possibilities. Most notably, there are a lot of great companies out there whose share price has dipped into penny stock range. Companies that would otherwise be out of reach to most penny stock investors.
But that window of opportunity will not last for long. â€œPanic selling is out of the way but it will take a week or two for people to look at the economy intelligently instead of emotionally,” commented another Wall Street analyst.
Keep in mind, this is the stock market and, as you can see, it is unpredictible. Sure many think it will stabilize in the near term, but there are others who think it will get worse before it gets better.
In a market that is continually setting records, a correction is inevitable and even healthy. At the same time, itâ€™s important to remember the stock market always bounces back; which bodes well for calmer, more informed penny stock investors.
Remember, if you think your favorite penny stock was undervalued before the subprime blues kicked in, itâ€™s probably an even greater bargain now.
About Peter Leeds:
Peter Leeds, CEO of peterleeds.com is also a successful book author. Leeds is widely known in the industry as the Penny Stocks Pro, a reputation built on giving clear and informed financial guidance based on years of investing in penny stocks, a passion that started at the young age of fourteen when he invested and lost the hard-earned sum of $3,800. From this modest beginning to today’s own financial success, Leeds learned by mistake and developed LEEDS ANALYSIS, a proprietary system of analysis which enables him to pick winners in the penny stock market and make suggestions in his newsletter. Leeds has helped thousands of others achieve their dreams of greater wealth by subscribing to the PeterLeeds.com newsletter.
To request an interview with Peter Leeds, contact his publicist Anne Howard at 310-295-9578, or at email@example.com or visit the Web site at www.peterleeds.com
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