You Want To Buy Stock Low, But Don’t Know When The Time May Be Right? By James R. Wigen, Sr. Portfolio Manager at Independent Financial Management

Many investors in today’s market climate are trying to figure out when to start investing in the market again, however, they don’t know what to look for which convinces them the market is low enough, and the time to buy is now.  Here are a couple strategies to consider:

  1.  We noticed last quarter when companies released their earnings, their stock experienced a decline between 10%-30%.  Many companies that watched their stocks drop had one thing in common most of the time, their current earnings were in good shape, HOWEVER, their forward looking statements were filled with uncertainty or worry.  Since stocks trade based on forward pricing, a future filled with uncertainty or worry = a lower stock price. 
  2. Today, we are about 2-3 weeks away from several companies announcing their earnings once again.  What do we want to look for to help us determine whether or not it’s a good time to buy their stock?  We want the current earnings to be ok, HOWEVER, the forward looking statements are encouraging or flat out good.  It will be very hard for a stock to drop 10%-30% if the forward looking statements are not filled with uncertainty or worry, but filled with stability, encouragement or growth.
  3. If you are waiting to take a big position in a stock after they announce their earnings, I would encourage you to rethink that.  In the Global environment we are in, good news or encouraging news today can easily become full of uncertainty or worry tomorrow.
  4. Find good companies that have fallen way off so far this year, and exercise the dollar cost average strategy.  In the long run, no need to jump into a stock with both feet because you think if you don’t you will miss a lot of the upside, this economy will be slow moving for several weeks to several months.  There are simply too many uncertainties around the World to think in a few weeks things become all clear for growth once again.

If you are looking for financial advice or portfolio management services, please contact me and we can set up a time to talk or meet in person.  Please email J.Wigen@IFManagers.com or call my office at 1-855-546-9443.

 

 

James CPM® designation was earned through Global Academy of Finance and Management or GAFM®

Investing involves serious risks and past performance is no guarantee of future performance or success.  This is not an offer to buy or sell securities and nothing contained herein should be interpreted as a recommendation regarding any investment or investment strategy.  Before making any decision to invest, first read the relevant disclosures and important information provided to you.

Please take the proper risk for your current situation and get the advice from a financial professional who clearly understands your current & future goals and objectives.

Investments are NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE   

All opinions expressed by James R. Wigen on this website are solely his opinions and do not reflect the opinions of IFP Advisors, LLC, dba Independent Financial Partners, (IFP).  Investment Advice offered through IFP Advisors, LLC, dba Independent Financial Partners (IFP), a Registered Investment Adviser. IFP and Independent Financial Management, LLC (IFM), are separate entities.

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