Everyone loves a post-christmas discount sale, investors should feel no different about the recent correction in equity markets. The fact is, its better to buy companies when they are cheap & negativity abounds than when everthing is positive.
Buy at the sound of canons, sell at the sound of trumpets. So goes the saying.
Now is a great time to start making a list of stocks with your preferred buy target price that you have always liked but may have been too expensive to consider in recent years. My only suggestion is to stick with companies with strong balance sheets & great managers that can weather tough credit and consumer conditions.
If you own mutual funds , now may be a good time to consider making contributions. Its always smarter to average down than try & pick a stockmarket bottom so consider staggering those contributions over each month.
Hopefully I will have a few interesting stock ideas to post in the next few weeks so stay tuned.
Disclosure: The above comments represent the opinions of the author and are not intended as investment advice and should not be relied upon as investment advice.
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