This year has seen a lot of ups and downs with the stock market and I have to say I am getting sick of it. Unfortunately, that is how things are and a person has to have the stomach to invest. You really have to have the mindset of a long-term term investor and diversify enough to weather any potential storm.
Under these conditions, it is really difficult to time the market and that is why I believe you should not go down that rabbit hole. Instead, you should mainly focus on buying strong companies that have an amazing track record for performing well under any economic condition. I personally like Nike, Walmart and Philip Morris International. All of these corporations are solid in their respected industry. Now we can debate whether you morally agree with the products they sale, but it is undeniable that these companies pay a major role in the economy.
If you are a long-term investor, the ups and downs are not going to impact you that much. Do you really think any of these companies are going to file for bankruptcy tomorrow? Investing in quality stocks is really the key during this roller coaster and I implore people to stay focus on long-term gains. If you let emotions get the better of you, a person can easily lose money.
So, be patient and try to eliminate the psychological urge to sell during turbulent times. Remember a contrarian investor buys when there’s blood in the streets. All the experts were saying to avoid buying Nike a year ago, but now it has increased nearly 25%. I personally increased my position during that period and now I am up around 20%. Sometimes it pays not listening to the crowd. What buying opportunities to you see right now?