Tough Investment Market

Quite awhile back the wife went to work for a large law firm that represents many public companies. Due to possible conflicts of interest, insider information and SEC rules I am only allowed to invest in the stock market through a blind trust. So instead of worrying about individual companies and market volatility I vet individual brokers like a professional sports team owner watches players.
Sometimes I believe I could do better but then I have much more free time without having to do all the diligence myself.

Quite aside from the likelihood that everyone isn't in a frenzy, . . . the difference is one can never be sure if the Wall Street sale will end or the sale will persist.

From CNN Money :
"The S&P 500 is down about 9% from its record highs of last year. The Dow and Nasdaq were down 10% from the highs on Thursday, officially falling into "correction" mode.
But lurking beneath the surface, the picture looks a lot worse. As of Friday [today] nearly half -- or 229 -- of the stocks in the S&P 500 have crumbled at least 20% below their 52-week highs, according to FactSet data."

[So the sale is already 20% for plenty of shareholders. - DD]

"But look at the signs of weakness in the broader S&P 1500, which includes small, medium and large-cap companies. The average stock in that index is down 25% from its high as of Friday, according to Bespoke Investment Group.
Small-cap stocks -- which are seen as more dangerous than their larger cousins -- are clearly getting hit a lot harder. The average small-cap stock is now down nearly 30% from its peak, putting it firmly in bear-market status."

[So the sale is already 30% for plenty of shareholders. - DD]

"And then there's energy. The dramatic decline in crude oil prices rocked the energy space. The average energy stock is now down a whopping 52% from its 52-week high, according to Bespoke. The only thing worse than that is small-cap energy, which is down 61%."

[So the sale is, . . . Holy-Moly small-cap energy is down 61% ! ! ! ]

And by the way, . . . the consensus within the CNN piece above is the economy is "humming along" and signals "no recession."

Never let a crisis go to waste. Many stocks are being beaten down because they are simply over-priced, but there are some damn good stocks on sale right now. The energy sector is a perfect example. One company I have is so beaten down , its yield is over 8% and its raised its dividend for 42 straight quarters. Unless one thinks oil will stay at present levels for the next two decades, it's a bit of a no brainer.

Welcome back Billyryan! haha. I own a couple energy stocks and thinking the same.

Not doing anything this week - not a good idea to sell in a down market. When the dust settles it might be a good time to pick up a few things at very good prices.