10-11-2018, 10:20 AM
(10-11-2018, 02:36 AM)vbin Wrote: Added VWO, STWD, AAL, BABA(non-div), TCEHY(non-div), NKE.
What are some of the stocks people here think are coming into buy territory ? Would be great to hear opinions from more savvy and experienced folks.
This may sound like generic advice but after enduring about 20 of these real bad stock market days I start with what NOT to do. The market can be very irrational for a time. Here are a few of my rules. I'm not perfect but I mostly abide.
-BUY QUALITY as there is no need to buy anything less now. If the company had potential fleas last month they still have them now. (Chip stocks). Investors (and traders) will flock to the good companies that are not likely to report disappointing earnings next month. Missing earning by much will be devastating to share price when there are better less risky options now.
-If you chase a high flier go very slow on the way down. I have been buying a single share of AMZN most every day for awhile. My commissions are $2 so that makes it easier. Be very wary of falling knife stocks. I'd like some BABA but no chance I jump in yet. There is a reason it is falling so hard, but the longterm future seems bright. It's a good company when China get's their economy and stock market out of freefall.
-There will likely be a flight to value soon. Good companies with a good DIV. It's likely healthcare stocks will be pretty strong as they are defensive. They aren't on sale so much now but their is a reason.
-Spreading my bets out for sure. At least small investments in my various ETFs. l expected this and was very cashy. Added to my Index funds yesterday. S&P 500 and S&P 600 smallcap. Small caps are taking a bad beating lately. They won't likely recover fast.
As I already mentioned I started some new smaller positions in large caps I haven't owned for a long time.
I think consumer staples, financials, insurance, and the leaders in other industries are as safe as it gets. I sold my utilities on the spike and will get back in soon enough. It is completely irrational that they spiked this week, and especially yesterday. A 3.5% dividend isn't going to save you in a rising interest environment. Not for long at elevated utility stock prices anyway. I predict they will pull back pretty hard when the market stops being so scared.
Be aware of the China trade fight in all decisions. Some companies are at extreme risk of being hurt. A lot of industrials are at risk for now. Should create a nice buying opportunity soon but most are still too expensive.
Not comfortable with my oil stock purchases but I am in or now. May or may not be a nice buying opportunity now but I am in at a little higher price.
Today I am nibbling on some HD, some more healthcare soon. I continue to go slow as who knows when this ends for sure? This is not the "big correction" in my opinion. Economy is still strong.