Yep. The Stock Market sucks right now.
Yep. Your investments are probably down the toilet.
Yep. You are probably panicking.
I get that.
Right now, things are looking S-C-A-R-Y. It’s no wonder you think the stock market sucks – because it does.
But, guess what. This too shall pass. In a few years from now (maybe two, maybe three) the stock market will be hot again. Trust me it will. History already tells us that over time stocks make an average of 10% p.a. when you take into account both the good and bad years. Of course you need to be holding over this time to get the benefit. Only the brave are doing that right now. And yes I know we’ve been through a very rocky time.
So what do you do right now? Buy, Sell, Hold, Jump off a Bridge?
Should You Sell Your Stocks?
Good god NO. A falling market is the worst time to sell. I know it can be difficult when you see the value of your portfolio getting lower each day, but the biggest losers in the market are those that panic sell.
There is no way I’ll be selling my shares right now. That’s crazy talk.
In every market crash, the only people that survived and recovered are those that held on for the ride.
So turn a blind eye, ignore the news, sell the TV – whatever it takes to ignore the doom and gloom right now and repeat over and over to yourself: This too shall pass.
Should You Buy Stocks In A Falling Market?
What about buying, is that a good idea?
In fact when the stock prices are falling it’s almost like a sale. Fundamentals are still strong in many companies and now you can get them for a bargain price. If you can ride the wave and are happy to wait it out a few years then it could be a very smart strategy for making money.
Of course you still need to choose those companies with strong fundamentals, but if you do you are likely to make a very nice profit in a few years when things get good again.
So if you ARE thinking of buying now when the stock market is on sale (doesn’t that sound much better than saying ‘bear market’) which stocks have good fundamentals?
Ok peeps, here are the blue chips I’d be putting my money in right now, including their fundamentals.
CVX – Chevron Corp
ROE is 21.33%, Qrtly Earnings 42.6%, Very Low Debt, has increased 13.82% over the last 12 months, and has a nice 3.2% Dividend Yield
KO – The Coca Cola Company
ROE is 41.05%, Qrty Earnings 18.1%, Acceptable Debt, has increased 14.03% over the last 12 months, and has a 2.7% div yield.
VZ – Verizon
ROE is 16.23%, Strong Qrtly Earnings, Reasonable Debt, Increased 10.92% over the past 12 months, and has a VERY high div yield of 5.2% (income + capital gain = oh yeah).
XOM – Exxon Mobil
ROE is 25.97%, Qrtly Earnings 69%, Very low debt, 12.39% stock price increase over the past 12 months, and a good 2.3% div yield.
What? You mean you still found four really awesome stocks that have increased in price; have strong fundamentals and good dividend yields even when the stock market is in turmoil? Yes. And that was just from looking at the Dow Jones Industrial Average. There is likely to be many more in the S&P500.
You just have to pick strong companies with sound fundamentals and be brave. Simple.
Thinking of you all right now,