3 Stocks That Are Fantastic Deals Right Now
Like most investors, you're probably exhausted by the big drops and the volatility that comes from 10 months of market woes. I know I am. Scanning the headlines, it's tough to find a guiding message you know to be more than just speculation. But I know three immutable facts about bear markets:
Not convinced of that last one? Let's talk data. According to investment firm Compound Capital Advisors, the average five-year return after the worst nine-month periods for stocks is 118%. Disciplined investors who continue to buy excellent companies, or just buy the whole market, will more than double their money in five years after a bear market on average. The 10-year returns are higher still.
But wait! Shouldn't we at least try to time the market? Get in at the very bottom? Not according to the data. JPMorgan Chase's wealth management firm points out that missing out on just the best 10 trading days in the last 20 years cut investors' annualized returns by nearly half. And the 10 best days tend to occur less than a month after the worst days. This makes the odds of consistently correctly timing the market incredibly tiny. Famed investor Warren Buffett can't do it -- and he doesn't try.
Source Fool.com
