It's a Good Time to Buy
Experts see silver lining as key stocks go cheap
By Matt Cantor,  Newser User
Posted Oct 12, 2008 10:10 AM CDT
Stephen Dimitri, right, of DRD Securities, waves an American flag as he works on the floor of the New York Stock Exchange Friday, Oct. 10, 2008.    (AP Photo/Richard Drew)
camera-icon View 1 more image

(Newser) – Panicking about the stock market plunge? Some analysts are looking on the bright side: If history is any guide, this could be a golden opportunity to buy stocks, the New York Times reports. Since the Depression, government intervention has generally succeeded at restoring economies, so buying low now could pay off big later. “The fact is, there are a lot of tremendous bargains out there,” says a mutual fund manager.

Some major companies are trading at just nine times their annual per-share profits, with smaller companies trading at even less. “This is the opportunity of a lifetime,” agreed a professional investor. “The most important securities are being given away.” Still, most remain concerned. Lengthy current trends away from risk have “broken out of the boundaries we’ve seen,” said an analyst.