Firms cannot run down stocks for ever: eventually, they will empty their warehouses.
ECONOMIST: Why China and Germany need to do more to boost demand
Investors had no appetite for risk on Monday, pulling down stocks as they shifted their money into safe, defensive plays like bonds and consumer staples.
You can also sell some down stocks to mitigate a tax bill (which may be a very attractive proposition to some investors very soon).
Anticipating the worst from a populist presidential candidate, Wall Street marks down stocks before a Democrat takes office--before, in fact, he is even elected.
So her daughter has spent many hours tracking down stocks, real estate, mutual funds and bank accounts that were sold or closed long ago.
While market volatility and economic uncertainty continue to shape investor sentiment, a number of investors viewed the recent stock market weakness as an opportunity to purchase beaten-down stocks.
FORBES: Low Bond Yields Push Investors Towards Dividend-Paying Stocks
Cash-strapped retailers who have cut costs by running down stocks of other firms' watches keep buying his, since they did not have many on hand to begin with.
So far China has made up for the shortfall by drawing down stocks, says Brown, who is infamous in China because of his predictions of long-term food shortages there.
The slower growth that scared Wall Street last year was caused partly by Gillette's decision to run down stocks of its Sensor and Atra shavers ahead of this week's launch.
There's a moral here, simple but worth repeating as investors go hunting for bargains among beaten-down stocks: The price tag on a company is not just the value of the common shares but the outstanding debt, too.
Indeed, some analyses such as work done by James Montier, now a strategist at fund shop GMO argue that investors have typically done better investing in the beaten-down stocks that everyone hates than they have in the glamorous ones everyone loves.
One optimistic note for the near term, though: Tax selling, which tends to depress stock prices, will end in December and thus lay the groundwork for a January effect (when investors gobble up the marked-down stocks, leading to a mini-rally).
Gibbons told his subscribers this week to buy a handful of beaten-down stocks, including blue-chips like Bank of New York (nyse: BK - news - people ), Coca-Cola (nyse: KO - news - people ), General Electric (nyse: GE - news - people ) and Goodyear Tire (nyse: GT - news - people ).
Both counties are ahead of the schedule leading to 2012 in drawing down their stocks, he said.
CENTERFORSECURITYPOLICY: STRATCOM: Safe, reliable deterrence critical
This may be a factor in some countries, but in others firms are still running down their stocks.
Carboy said that investors who trade down these stocks on concerns over reduced incentives in Spain are short-term focused.
The stock market is dragging down gold stocks today, but not much.
FORBES: Gold Stocks Have Not Been As Good As Gold But That's Changing
Pertamina, the state-owned firm that administers the subsidy, is facing a desperate cash crunch, and has resorted to running down its stocks.
To run down their stocks, firms will have to cut back output.
The majority of their assets are in things that hold their value when the dollar goes down: stocks, gold, commodities, beachfront property, etc.
Despite these worries, the economy may still avoid a contraction in coming months, if only because American firms have run down their stocks so aggressively.
Think of the debt as a sunk cost (I am reminded of all those nuclear reactors that weighed down utility stocks in the 1980s and 1990s).
Demand there is still growing, but more slowly than expected, and the shortfall is exacerbated by Asian countries' eagerness to save dollars by running down oil stocks.
In recent years, hedge fund managers like John Paulson and David Tepper, have pulled off some of the greatest trades of all time by doing things like betting against mortgage-backed securities and buying beaten-down banks stocks.
FORBES: Len Blavatnik's LyondellBasell Trade Is Becoming Legendary
There's a moral here, simple but worth repeating as investors go hunting for bargains among beaten-down Nasdaq stocks: The price tag on a company is not just the value of the common shares but the outstanding debt, too.
In more blunt terms, a downward move by domestic large-cap stocks now has an increased chance of dragging down emerging market stocks, REITs and commodities with it.
FORBES: Benefits From Asset Allocation Are Harder To Come By
The arguments against privatization come down to: What if you retire when stocks are down?
应用推荐