The stock market as we know it has long been a lively creature- one that excels and then experiences brief periods of downturns, with market trends fluctuating wildly. Normally, during these fickle market trends and periods of loss, buyers look to purchase stocks that they feel will bounce back easily after the market readjusts. For many, these quick buying decisions end up resulting in great portfolio gains! However, when the markets continue to downward spiral as of late, the question soon becomes “when’s the right time to buy in?”.
The current state of affairs in both the US and global economies is shaping the market trends to become an investors playground. As the Dow Jones Industrial has plunged over 10,000 points over the last several months, Investors are left wondering when the right time is to buy into a market that just can’t seem to stop falling. Investors with plenty of cash to spare are in a unique position to buy in at just the right times as market trends follow trends that parallel those of the 2008 financial crash.
When Opportunity Knocks
With the world’s current state of affairs in mind, it’s easy to become anxious about the latest market down turns. While it most certainly means a loss of assets for current investors, it als
o means a major opportunity for those looking to buy in. There’s an age old saying of “Buy low, sell high.” when it comes to the market trends. While this strategy is absolutely easier said than done, it’s also an investment technique that has served many well throughout it’s usage.
Learn From The Success Of Others
If you’re feeling nervous about investing or maintaining your assets during our current state of affairs, a great thing to do is to draw inspiration from the success of other investors and companies. Take Warren Buffet for example. His iconic “Buy and Hold” investment strategy is something that many people are putting to use right now. Admittedly, the tough part of this strategy while keeping market trends in mind is making sure not to sell emotionally and to stay the course even in the face of fear.
There are many different investment strategies out there and it’s important to remember that every one of them may not work for you! At the end of the day, it’s your money! Make sure to do what feels right to you as you work towards achieving your long term investment goals!
Stocks to Keep an Eye On In 2020
While the stock market is always filled with at least a bit of uncertainty, our current market trends and situation are shaping an even riskier investing environment than usual. With that said, there are always a few companies and stock options that will remain great investments! Here are the top stocks to keep an eye on if you’re looking to make some investments anytime soon.
- Berkshire Hathaway
If you’re looking to follow in the footsteps of Warren Buffet, why not invest in his company too? Berkshire Hathaway has had a long streak of profitability and has continued to make several acquisitions throughout the first quarter of 2020. This stock could be a great addition to your portfolio if you’re looking to diversify with a long term buy.
2. Bank of America
As a bank that’s worked to make major strides since the 2008 financial crisis, Bank of America is no stranger to hard work and profitability over time. While banking and other financial stocks tend to take a dive during times of economic downturn, now could actually be prime time for investors looking to diversify their portfolio without breaking their wallet. Currently, Bank of America’s stock is going for less than its book value which is a major sign that investors who buy in now will end up seeing major returns down the road, so market trends look pretty stable here!
3. Carnival Corporation
If you’ve been keeping up with the news and market trends lately, you’ll know that the cruise industry is taking a major hit due to the COVID-19 virus. Many cruise lines have actually suspended sailing until later in the year, Carnival is yet another company that has agreed to do this. While things may be looking grim at Carnival HQ in the short term, travel stocks such as this one are actually a great thing to buy when the market is in a downturn. Once the virus passes and markets are looking up again, Carnival and other major hospitality industry stocks will once again soar in pricing.
How To Make Smart Decisions
The biggest takeaway for investors right now is the idea of keeping up with market trends and making smart, logic driven investment decisions. When global crisis strikes, it can be easy to make investment decisions based on current panic and rash thinking amongst your peers. The best thing to do in situations where markets can be uncertain is to look at all the facts.
In the coming weeks as the markets trends continue to respond to global events, investors could find themselves in a continued situation of immense buying opportunity. Paying attention to the latest market happenings will be an absolute must as investors look to take advantage of market trends with the best timing possible.
Written By: Gaib Bunch