For some investors, last week's market lows were devastating. For others, it was a great time to buy. As stock index after stock index spirals downward, some investors have hit on a time-proven approach for making money in this market. They've gone bottom-fishing. They are value investors, and they think differently from the standard retail investor who chased after growth companies for most of the '90s bull market.
Value investors fish for single companies, focusing on old-fashioned notions like assets and cash.
Their approach stays the same in lean times and good times alike. They couldn't care less about the broader market gyrations. We know the psychology is negative - that's why we're getting bargains. For most investors, the markets remain a gloomy place. Last week, the Nasdaq composite index retreated under 2000, territory it hasn't seen since early 1998.