| The Casual Investor | ||||||||||||
| Investing tips for those who are not yet rich | ||||||||||||
Responding to Investor Panic
Investor panic has been driving share prices down in response to continued worries about the subprime market. In response to this, I'm using different criteria to separate the good from the bad this week. First, all stocks this week will have fewer than 5 million outstanding shares and an average daily volume of less than 100. After those criteria are passed, then the traditional criteria will be considered. The extra leading criteria have been added to make sure all selected stocks are affected as little as possible by the investor panic. In lieu of the less-than-100 daily volume criterion, I may also choose stocks that fulfill the first criterion and have recently gone through a heavy selloff. By choosing stocks this way first, I should avoid the worst of the panic and find good companies that are more likely to gain value than to lose it. 2007-12-17 20:09:31 GMT
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