Buy the Dip?
After a 10 percent rally to enter the year of 2022, the market finds itself down nearly 9 percent since the beginning of the year. Most of this is due to the Russian invasion of Ukraine, and that fact might prove to be valuable. We’ve discussed that the economic state of the US is steadily improving, and as COVID becomes less and less of a threat, it seems to be obvious that it’s a good time to buy stocks.
Certain sectors have seen a deeper pullback than others. Technology, for example, has seen some of its respective businesses’ stock prices fall by more than 60 percent as they were considered a bit lofty in 2022. Cyclicals have had a better, but still negative year, but it’s not crazy to say that some of these stocks are cheap compared to the levels they were in the last year. This is a great buying opportunity, but there are some things that need to be cleared.
First, some of these stocks that have fallen from sky-high valuations still have room to continue as they are simply bad or unsustainable businesses. Research on a company is the most important thing you can do to confirm a reasonable investment, and proper analysis will be able to gauge your view on whether it’s going to continue spiraling down or if it’s at good value.
Next, you must make sure you are keeping up with world events. The Ukraine crisis is a great example, and news can show you something that might affect your investments or provide you with another buying opportunity. After all, we wouldn’t be in correction territory if it weren’t for current events!
Lastly, you can find possible value opportunities on Invstr with the Risers and Fallers feature in the Instruments section. The Risers and Fallers section shows you the 12 stocks that have gained the most and the 12 stocks that have lost the most every day, which can inform you on when to buy and sell shares. Some famous tech companies like Snowflake have popped up in the Fallers section, providing you with possible opportunities to exploit every day.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.