Dusting Off My Watch List

While I wouldn't call the recent market declines a broad market selloff, investor sentiment seems to be taking a turn for the worst. While the S&P 500 is still up nearly 10%, year-to-date, some profit-taking seems to be taking place. With many investors still on edge, selling begets more selling. 

As a predominantly long-only investor, I naturally benefit from rising stock prices. But I  prefer stock prices to be declining, as this raises the probability that I will buy at an undervalued price. More so, I increase my investments' upside potential when I buy when others are selling. No one likes to catch a falling knife, and buying when prices are declining can often mean further declines after investing. Fortunately, precise timing is not a prerequisite for successful investment results. What is required, however, is preparedness -- being ready to commit capital when the moment presents itself. So now seems like a good time to review my ever expanding watch list again. ...388 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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