Will Wall Street Rebound?

Last week, as you probably did, I watched in horror as the stock market entered what seemed suspiciously like a freefall. Then, I shook myself and began thinking about the opportunities presented by a sort-of stock market crash. Because I am far away from needing my stocks and mutual funds to be doing well, I started thinking about dollar cost averaging and how maybe it was time to buy something. (You know that old adage "Buy low, sell high".)

The key, of course, is to buy something that is likely to recover. And it looks like the plunging financial stocks might have been key. After all, despite the lending practices that led to the subprime lending and credit market crash in the first place, the Fed is still remarkably amenable to doing something to keep the economy afloat. So while rumors of an emergency Fed meeting to make an emergency rate cut are subsiding, it is still worth noting that the Fed added cash to the market in order to increase liquidity. And this morning things seem to be stabilizing. MarketWatch points this out about the likelihood of a Wall Street rebound:

U.S. stocks are set to start higher Monday, with investors hopeful overseas central banking injections will ease worries about a global credit crunch.

"The injection of liquidity by major central banks is helping confidence that we'll be able to work our way through this credit crunch," said Art Hogan, market strategist at Jefferies & Co.

So, with the stock market on the rise, there is still time to get in there before the stocks make a full recovery. Do a little research on your own, and see if you can come up with some likely stocks that are a little low now, but are likely to recover in the coming weeks.

Disclaimer: I am not an investment professional. I am merely an amateur with an interest in growing my personal wealth. Do your own research and/or consult with an investment professional before making investment decisions.