Don’t Buy Stocks Too Soon

Here’s a good article that discusses why even though stocks are cheap right now, it still may be too soon to buy, as the market will probably get substantially worse, before it gets better.

In general, I share this point of view. For those of my readers who have asked why I am not recommending buying stocks like eBay, Yahoo! and a host of others, this pretty much summarizes the broad guiding thought: they will likely fall further.

In summary, be ready to buy, but don’t buy quite yet. But when you do buy, I stand by many of my recommendations from before the recent crisis. I still recommend SunPower, Akamai, Polycom, Rim, Nokia, Autodesk, Qualcomm, Concur, SuccessFactors, ERI, etc. but with the caveat that the macro conditions are still driving stocks down right now, and we have not hit bottom yet.