I’m watching Mad Money right about now and Jim Cramer seems to be claiming that the US Stock market is set for a big recession. The reason? The sub-prime lending that has sent stock down over the last couple of weeks is not going away any time soon.
I just don’t see a recession coming. CNBC just got through saying that the sub-prime mess only applies to a small subset of those who have bad credit and leveraged too much. I think that they might have underplayed it a little bit, but not too much. This means that there are a number of companies that are getting punished whose business shouldn’t be affected by it. In short you have an opportunity now to buy quality businesses at a discount. Try doing that in true bull market.
If I had money on the sidelines, I’d divide it up into 3 to 6 equal parts and invest it over the next 3 months in equal increments. Of you could potentially buy some index stocks each day with Zecco.com, and not pay any commissions.