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.
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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 (NYSE:MCD) (which I own) and Coca-Cola (NYSE: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.