Today I read an article in Money magazine entitled Awesome Values in Stocks. The reasoning behind their argument of why now is an awesome time to invest is that some formally very expensive stocks can now essentially be bought at a bargain.
For instance, one of their suggestions was a company I am sure we are all familiar with China Petroleum & Chemical, because I know that they are always at the center of my thoughts, sure! Well they are down 56% from they're former cost to a present price of $79 per stock. The articles explanation is this, "China's largest refiner faces rising taxes on energy exploration, but it still stands to gain from that country's long-term boom".
Now, seeing as how China did finance our $500 billion dollar bailout, the want to invest in their companies does come off as intriguing, but what makes this stand out is that over the next 5 years China Petroleum & Chemical's stock price is due to rise by 29% (Money Magazine).
So, today my questions are three fold. First, when trying to save and establish wealth, is it also essential to ensure you are growing future investments? Second, for as risky as stocks can be, can the time of a recession serve as the best time to slowly build a small portfolio? Third, would you invest in this company, based on this information, regardless of your financial state?
As always, thank you...The Runner
