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<p>[QUOTE=&quot;Cloudsweeper99, post: 1162385, member: 3011&quot;]This is not value investing.&nbsp; Value investors do not make decisions based on price action.&nbsp; A stock can be 50% lower than the old high, and be wildly overvalued.&nbsp; Another stock can be at at 52 week high and be a screaming bargain.&nbsp; The other little detail is that nobody knows whether the market is at a top or bottom until a reasonably long time after it occurs.&nbsp; When you wake up any given Monday morning, you aren&#039;t likely to say, &quot;the top is today.&quot;&nbsp; In February, 1930 the market looked like a real bargain.&nbsp; Stock prices were back to levels of several years earlier and the market started rising nearly every day.&nbsp; But the investors did not know that what looked like a bottom to them was not even midway to the bottom, and stocks lost another two-thirds of their price over the next two years.&nbsp; There are many many more examples.</p><p><br /></p><p>Value investing is about measuring what a company is worth on a per share basis, then comparing it to the price.&nbsp; Price is not an input into the value calculation.[/QUOTE]</p><p><br /></p>

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