Recenty, the market has been in a down draft. The paper losses are painful.
These downdrafts are exactly the time period when smart investors should be considering trickling their cash reserves into individual stocks. Let's call it counter intuitive. Your gut says no, but intellectually you know the best time to buy is when the "sales" are on. With some of the best buys I've made, my gut hurt, but I knew, in my mind, that it was the right move.
To buy in downdrafts, HAVING a shopping list prepared is CRITICAL The shopping list consists of companies that you have carefully researched from a fundamental perspective that you know are financially strong. Why? When the market drops down, EVERYTHING drops down. Good companies get thrown out with the bad. That, my friend, is the time to "go shopping".
Now let's be clear, you have to be patient, because it is not cause and effect. You have to willing to wait. But, those who are willing to wait are those who benefit the most.
Patience is a virtue.
Be safe, be smart, be prepared, be well read and be successful!
