stocks down? BUY! BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!BUY!

Cramer wannabe? lol

In a nutshell because the stock has suddenly become cheaper, some investors who were not previously interested in buying it suddenly decide that it may be a good investment. For example AAPL has fallen significantly over the last few weeks from a high of nearly $150 to below $120. A lot of people who owned the stock have clearly decided that it is time to get out and/or shorts have borrowed the stock and sold it. However I (an investor without a prior stake in Apple) think that the company remains a very good company with great long term prospects, and thus I am much more enthusiastic about buying in at $120 than I am at $150. So, as a general rule, when share prices decrease new investors come in who think the stock is a good value at its new level. In general though your gut reaction is not misplaced-- people tend to assume that trends will continue, and very often once bad news comes a company will continue to decline. I tend to think that the old axiom 'don't try to catch a falling knife' is good advice. Still after a stock has been pummeled it can be a good idea to look for buying opportunities. Good luck.

then SELL SELL SELL!?