- Personal Finance
Another Recession is Imminent: Now is the Time to Buy Stock!
With the Sudden Plummet in the Stock Market... A Buyer's Dream!
Never was I more excited about the future of my investments when I saw the stock market plummet 400 points after S&P (wrongly) knocked the value of American Treasury Bonds down a notch. The panic-stricken sell-off was predictable, and made me cackle with glee. You see, investing can actually be summed up with Warren Buffet's quote "Be greedy when others are fearful, and fearful when others are greedy."
I suspect I am not alone among financially-educated, not-easily-panicked investors of the world. To me, this was an excellent buying opportunity, where all the stocks I've wanted to own more of suddenly drop in value because of an event that has nothing to do with the fundamental performance of a company, it's marketplace, or even the world.
I actually agree with critics of the S&P who feel the downgrade was a crass political act with no basis in reality. In this world, America's Treasury Bonds really are the safest investment in the world.
For this reason, I encourage investors to investigate shares of companies they've wanted to purchase, but have been waiting for a better value. For instance, strong dividend payer ADP TotalSource (ADP) is a great long-term stock, with steady dividends and a unique position in the marketplace to show great profits at the leading edge of a recovery.
Caterpillar is a beloved stock of many analysts, with good reason. Strong fundamental business acumen with a unique position in the marketplace as a premiere provider of specialty equipment that almost everyone needs? Sign me up! The recent market downtrend has struck this stock, as well, making it more affordable than before.
In this market downtrend, based solely on political blustering and media noise, the fundamental values of strong companies still exist. Vodafone didn't suddenly become weaker as a business just because one ratings agency has given in to political winds. Two of the strongest and most valuable brands in the world, even Google and Apple have suddenly dropped in price. The value of these companies and brands has not changed one iota between last week and today. The investor panic that caused the market to drop is not based on the strength or weakness of any of these companies.
Now's the time for investors to search out great deals.
I do not own positions in any of these stocks, nor do I plan on owning any soon. (I went after a couple others on my watch list now that they've dropped in price for no rational reason!)