Ouch! That was an ugly week, and so far, an ugly month. Regarding what I said last week, forget it: the market certainly isn’t moving sideways any longer.
On the other hand, I view this as a “stocks on sale” moment. I started buying early this week and am about 60% long. I’ll go to 200% long if the market keeps dropping, and if you’re in my camp, you just have to be patient and not panic.
As for specific stocks to buy when the market gets like this, I always turn to the “old reliables” and try to pick them up when they pull back to their long-term uptrend line. Such is the case with both McDonald’s (MCD) (which I own) and Coca-Cola (KO).
Of course, in this environment, nothing is a sure thing. But, stocks like this usually bounce back and offer a nice reward. You just have to hang in there when and if it really gets awful.
Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."