Predicting a Rebound: Here’s How to Buy Cheap Stocks

It’s funny the things that come back to you.

Preoccupying my mind now — and perhaps yours too — is when to buy the ‘bottom’ of this market. Every crisis has an opportunity. And if we look back to the lessons of 2008, here we are again.

As the markets were ramping up in the 2010s, I made a memorable visit to the Wingspan National Bird of Prey Centre. Recalling the hawks of my childhood in rural New Zealand.

A powerful image and sensation remains with me. A falcon swooping down on a rabbit lure. These raptors reach speeds of up to 320 km/h, creating a force that stuns or kills their prey on impact.

But what is most startling is their success rate.

Certain peregrine falcons have demonstrated a successful strike rate of between 73 to 93%.

Now, when we seek to buy value shares in a falling market, we’re looking to swoop in on them at or near their bottom.

 

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Simon is the Chief Executive Officer and Publisher at Wealth Morning. He has been investing in the markets since he was 17. He recently spent a couple of years working in the hedge-fund industry in Europe. Before this, he owned an award-winning professional-services business and online-learning company in Auckland for 20 years. He has completed the Certificate in Discretionary Investment Management from the Personal Finance Society (UK), has written a bestselling book, and manages global share portfolios. Simon is a shareholder of Wealth Morning.


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