10 Stocks to Buy on a Sell-Off
With stocks stalled after a huge rally, we could be looking at a correction of 10% or so, and it's good to be ready. Here are ten to watch and when to buy them, writes MoneyShow's Jim Jubak, also of Jubak's Picks.
Are we in for a correction? Could be.
And if you think we're headed for a replay of the late-March-through-early-June or early-September-through-mid-November pullbacks of 2012, what should you be doing about it?
Raising a little cash seems a reasonable idea, of course. Although since we're talking declines of 10% or less here (in my estimation), I don't think it makes sense to sell everything.
But you should also devote some "correction preparation" time into putting together a list of stocks you'd most like to buy if we do indeed get a reasonable correction. Because in the current state of the financial markets, not only are corrections relatively frequent events, they don't necessarily last very long. You need to be ready.
Remember, we're dealing with extraordinarily volatile markets here. The pullback from March 29 to June 4, 2012 quickly turned into a rally that took the S&P 500 up 14.8% before it peaked on September 14.
If you're dithering over what to buy on a sell-off, you could miss some of the best bargains. That's why for today's post, I've put together a list of ten stocks to buy on a correction.
Get Ready, Get Set
Technically, a correction is a drop of 10% or more.