No time like the present to invest

Despite a stock market that has dropped 10% and a credit crisis, the time is right to invest, according to the head of Morningstar.

Despite a stock market that has dropped 10% and a credit crisis, the time is right to invest, according to the head of Morningstar.
“There is a lot of gloom in the air,” said Joseph Mansueto, chairman and chief executive at Morningstar Inc. of Chicago. “These are typically the times when good investments are made.”
Morningstar tracks the stocks of about 2,000 companies. “These stocks are trading at 86% of fair value, versus 104% of fair value a year ago,” Mr. Mansueto said. “The prices have come down more than the fair value has come down. The stock market is down 10% over the past year.”
Problems in the U.S. credit markets have affected other sectors of the economy, he added.
“In the 25 years I have been in the investment business, the magnitude of this crisis is unprecedented,” Mr. Mansueto said.
In the wake of the 1987 crash, the market rebounded quickly, and the technology boom-bust was confined to one sector.
“This crisis, centered in financials, is more widespread,” Mr. Mansueto said. “People are more dependent on credit. The magnitude of this is unknown, as well as the length of time this will persist.”