Analysts weigh in on recent sell-off 💭
Inflation. Rates hikes. The Fed. Monetary policy. Bear market. Yada, yada, yada.
These are the keywords that keep popping up whenever we scan through news headlines these days.
The fact is that the 3 main indexes are down from their all-time highs just 6 months ago.
So.. what do you see when the indexes are down? Fear or opportunity? 🤔
Well.. investors who are in it for the long-term would see opportunity.
Did you know that investors who bought stocks the day after the S&P 500 entered a bear market have made an average of 22.17% within 12 months? 🤯
Let’s take a look at what a few analysts have to say about the recent market volatility.
Doug Kass 💰
Doug Kass is the Founder and President of Seabreeze Partners Management, Inc., a privately-owned hedge fund sponsor that focuses its investments in large-cap companies.
“The panic of the last few days has resulted in the emergence of some great long-term opportunities with rich and favorable upside reward vs. downside risk ratios… While fortunes have been lost in 2022, fortunes may be made by those that are dispassionate and selectively buy today” - Doug Kass.
Jim Cramer 👴🏽
Jim Cramer is the host of CNBC’s Mad Money and Squawk on the Street. He used to be a hedge fund manager, founder, and senior partner at Cramer Berkowitz. He seems to be of the same view as Doug Kass.
“When the market comes down so far, so fast, you can find genuinely good buying opportunities” - Jim Cramer.
He suggests buying stocks with good dividend protection and healthy growth such as:
Devon Energy (DVN)
ONEOK (OKE)
Verizon (VZ)
Huntington Bancshares (HBAN)
VICI Properties (VICI)
Newegg (NEGG)
IBM (IBM)
Cisco (CSCO)
Advance Auto Parts (AAP)
NRG Energy (NRG)
Cathie Wood 👠
Cathie Wood is the founder, CEO & CIO of Ark Invest. She is a boss lady who believes in tech stocks and companies that are set to disrupt our world in the years to come. She has several ETFs which are available on Gotrade. These include ARK Fintech ETF (ARKF), ARK Genomic ETF (ARKG), ARK Innovation ETF (ARKK), ARK Tech & Robotics ETF (ARKQ), Ark Next Gen Internet ETF (ARKW), and ARK Space ETF (ARKX).
She has come under scrutiny recently after the weak performance of her ETFs this year, but she remains steadfast in her view.
“Many consider what has happened in the last three months to be the beginning of another, or the equivalent of, the tech and telecom bust. We do not believe that’s the case in the least” - Cathie Wood.
She remains bullish on several stocks including Tesla (TSLA), Zoom (ZM), Roku (ROKU) and Block (SQ).
In case you didn’t know, she publishes all her trades on her website. You’re welcome! 😉
Warren Buffett 💼
Every investor would know who Warren Buffett is. He is the Chairman and CEO of Berkshire Hathaway (BRK.B), and is the ultimate investing guru.
So, what does Mr Buffett have to say about market volatility and crashes?
“I would tell [investors] to buy, hold and don’t watch the market too closely,” Buffett told CNBC in 2016 during a period of wild market fluctuations.
Mr Buffett recently bought shares of Chevron (CVX), Occidental (OXY), HP (HPQ), Citibank (C) and Paramount (PARA).
As we all know, Warren Buffett is a value investor. He believes in buying companies that are trading below its intrinsic value, and holding it for a long period of time. He believes that when you buy a share, you are buying a piece of the company and you actually own a piece of the company, becoming a true shareholder of the company.
“The money is made in investments by investing and by owning good companies for long periods of time. If they buy good companies, buy them over time, they’re going to do fine 10, 20, 30 years from now… If they’re trying to buy and sell stocks, and worry when they go down a little bit… and think maybe they should sell them when they go up, they’re not going to have very good results” - Warren Buffett.
When looking to invest in companies, be sure to choose the companies wisely!
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