Strategies
3459 posts
The core forces that were at work for the last 12 months haven't changed and should reassert themselves once these big hedge funds have been blown out of this market.
My favorite scenario is a panic sell-off, because a reaction trade on the long side would offers what I consider a compelling risk-reward situation.
We have been able to identify companies with undiminished and even enhanced long term prospects that have sold off along with less promising ones. Here are three.
While painful at first, as a longer-term investors I’d welcome this as a buying event - just another small mark on the overall, historical market uptrend.
Not only do these stocks gain in appeal when the market drops, but I can sleep at night knowing that weakness is an advantage for the typical stock in the model, characterized by very strong income and liquidity.
The regional debt crisis is like an ominous monster that lurks in the shadows. Everyone knows its there, but at least for now, life goes on for the average person.
Upside stock price potential now looks not as strong in the large-caps as some of the smaller companies that can grow at a high rate for as long as a decade from now.