| With recent employment figures, it's like we're looking | | | | It was when things seemed darkest that astute |
| down the gun barrel. We've witnessed 21 quarters in | | | | penny stock investors realized that we were much |
| a row of declining employment numbers, culminating | | | | closer to the bottom than the top, and thus more |
| in the most people who are out of work since 1983. | | | | likely to see great upside in stock prices and much |
| This sounds pretty bleak, but it could actually foretell | | | | less likely to suffer downside risk. |
| the best time to jump back into stocks in general, | | | | Remember that employment numbers are a lagging |
| and specifically penny stocks. | | | | economic indicator. We won't see the job numbers |
| Among other disastrous events, there have been a | | | | improve until well after the economy has begun it's |
| few very notable occurrences: GM became a penny | | | | recovery, perhaps even as much as 12 months later. |
| stock before falling into bankruptcy; several major | | | | Now consider that the stock market is a leading |
| financial institutions went out of business; the stock | | | | economic indicator. Months before things pick up, we'll |
| markets took a beating. | | | | see the stock market come back to life, and start |
| Yes, the stock markets took a beating... until | | | | producing gains. This actually started over the last |
| recently, that is. Let's consider the other side to the | | | | few months, creating both opportunities for astute |
| story, and perhaps you won't feel quite so | | | | penny stock investors, and profits for well positioned |
| pessimistic. | | | | penny stock traders. |
| Some of the many factors that are pointing at a bull | | | | In addition, many sectors of the economy are |
| market for equities include: | | | | currently oversold, and there is a lot of institutional |
| Months ago, investors capitulated beneath the weight | | | | money (billions) on the sidelines that is just now |
| of negative news and poor earnings reports. Good | | | | starting to trickle back into equities. |
| news was overlooked, and bad news was | | | | All of that money, which used to be in equities in the |
| over-reacted to. | | | | first place, found safe haven in gold and the now |
| This situation has slowly begun to turn around, as is | | | | flailing American dollar. This trend is coming full circle, |
| evidenced by large companies and penny stocks alike | | | | as investors see the stock market stabilizing, with |
| that are not seeing major share price hits when | | | | some strong gains in large cap and penny stocks |
| they've released poor news items in the last few | | | | alike. |
| months. | | | | Added to all of this is the fact that investor |
| It was the broad-based capitulation that factored all | | | | sentiment, which is a contrarian indicator, is negative. |
| the negative news into the share prices of penny | | | | The more negative, the more likely you will see a bull |
| stock companies, setting the stage for much greater | | | | market. |
| upside probability and much less downside potential. | | | | So, when you hear the doom and gloom reports |
| Indeed, some companies got hit so hard that even | | | | about all the job losses, just rest assured that it may |
| major blue-chip names like Ford Motor Company and | | | | mean the worst is over. Whether you are a penny |
| Citi Bank fell below $5 per share, and thus into penny | | | | stock lover, or prefer to stick with large cap stocks, |
| stock territory. | | | | you could be in for a strong recovery. |