Sunken Treasure?

How to spot value in a stock market that's probably heading north

If stocks are finally near the bottom, which is the emerging consensus, a lot of market truisms fall neatly into place. Sure enough, in the end bear markets leave no places to hide. "Safe" havens like Coca-Cola and Philip Morris crashed more than 20% as the Dow plunged in June and July. Sure enough too, the collective wisdom of the market understands recessions better than the economists. Last week's revised figures show the economy contracted in not just one but three quarters last year. That deep pullback helps explain why the market began tanking in 2000, when economists were insisting the...

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