First, a history lesson: If you were investing in stocks on March 9, 2009, you may recall that things were bad and more bad news was ahead. many investors thought, "What a foolish time to invest in stocks!" Yet, that was the market bottom and precisely the best time to invest in stocks. Why? Because the sellers had finished all their selling. From that point, in fits and starts, the stock market recovered. Eventually, the economy followed apace and recovered as well.
Currently, the stock market hit a recent low on June 17th with the Dow dipping below 30,000 and the S&P 500 reaching 3,636. Since then, stocks have staged a rebound despite quite negative sentiment in the business and investing communities.
The $64,000 question is, “Is this the bottom?”
The two-cent answer is, “We don’t know.” It is unknowable. But we will acknowledge it is an encouraging sign that markets have retraced about half their declines.
In all stages of the market cycle, investors should focus on the few things under their control, such as owning good companies and buying them at reasonable prices -- like the three companies profiled in the September 2022 issue of the Investor Advisory Service newsletter.
With the current market conditions being what they are, there are still some stocks that could be strong additions to a careful investor's portfolio at their present prices.
This commentary originally appeared in the issue of Investor Advisory Service published in late August. To receive this information in a more timely matter and receive two or three stock picks each month
Read the full investment commentary -- and our three selected companies -- in the September 2022 issue of the Investor Advisory Service stock newsletter, rated #1 for performance in 2021 by Hulbert Ratings.
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