Applies to #Stocks in a Market Downtrend

If you believe a stock is a good buy simply because it has dropped 50% from its all-time high (ATH), remember—it can fall another 50%

I’ve witnessed the 2008 and seen the valuations of many hot themes and stories from that period. Some of those stocks never recovered or took a decade to recover, if at all.

Moreover, accounting gimmicks that were dressed up during the bull market will likely be exposed in the coming quarters. Stocks that seem artificially cheap now may soon appear overpriced.

If you’re a #Fundamental Investor, do your stock research twice. If you’re a #Technical Investor, make sure there’s a confirmed uptrend before entering.
#Stocks