An simplified plan. Should work well if you can address a few issues:

1) Markets rarely get seriously undervalued for very long. Then they stay overvalued for extended periods. If you sell to early, it takes a special type of tempermant to stay out of the market. It is this one skill (however simple and complex) that makes the difference between brilliant to avg. investing.

Sometimes the best trade is the one you never made... (this is a deeper thought than you might think)

2) You mention trade, how quickly do you think these stocks will move from 5 to 3 stars and back?

3) Are you a net buyer of stocks, or retiring/retired?

4) What if your in 5 star stocks and the market continues to slide... will you hold, buy or sell?

Your right, Morningstar has some wonderful tools out there that will get you in the market at great times, but valuations can change unpredictably. What looks undervalued today can look overpriced tomorrow and vice versa. I use Morningstar, MSN investing tool box screener and SEC.gov almost exclusively. So you know using Morningstar tools has my vote of confidence if used right.

BGF

Originally posted in thread: 602