Looking for Investment Opportunities in the Bear Market
Right now, there is a bit of worry in terms of investing in the stock market. We’re in a bear market, and that has some people a little concerned about where they put their money. In some cases, there is some outright panic. However, I have long been an advocate of a measured approach to investing, and I have often recommended that now is a good time to buy. (Of course, it is important to choose your investments carefully; just because something is cheap doesn’t mean it’s a good idea.)
Fortune’s Captain’s Blog over at CNN Money has some interesting ideas for investing in the bear market. Here are my favorites from the bunch:
- Consider Obama stocks. Now that Obama has been elected, it makes sense to assume that some stocks are going to benefit. Some of the Obama sectors that are likely to see a boost sometime in the next year or two are likely to be technology and clean energy. The policies that Obama favors also favors some of these stocks.
- Look to the dividends. Now might be a good time to switch to companies that pay dividends. Some of the dividends are being slashed right now, but at some point, when the market recovers, dividends will find their way up again.
- Frugal companies. Many companies are cutting costs right now. Take a look at which companies are scaling back a bit, and consider those. However, be warned: This may not work if the cost cutting, rather than inspiring admiration, instead inspires panic about the solvency of the company.
- Earnings. The ability of a company to grow earnings is important. Even if earnings aren’t growing as fast as they used to, a company that manages to avoid a loss in this climate is one to consider.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
