Stocks Down = Time to Add?

in stocks •  6 years ago 

As you likely know, the US stock market has had a stiff decline the last couple of days, with the Dow Jones Industrial Average down 1,100 points – not a small amount!

Well, if you have conviction and a long term investing horizon, retracements like this can be a good time to add to positions you like.

I am currently adding to my GoPro position – GoPro has really done poorly over the holiday season the last two years, running out of inventory and missing expectations. They have recently launched a new action cam and appear ready to not repeat the mistakes of the last two holiday seasons. Given this, as well as the cheapness of the stock by many metrics (Ex: Price/Sales ratio of 0.75 when the S&P average is 1.5, making it significantly undervalued), I think the stock is poised for a beat and a run. I feel GoPro is a $20 stock, so buying at $6 feels like a deal to me.

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Of course, you should always do your own due diligence and make your own investment decisions. I am not a professional, so I am just sharing what I am doing at the moment.

In general, most of my stock market exposure is through ETFs and Mutual Funds, but I do like to invest in some individual issuers to make investing more entertaining. I thought I would share a little bit with you today!

Take care my friends,

Brian

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Excellent explanation about stock market. Your valuable explanation always helpful for us. I appreciate your great analysis.

I won a GoPro before on a key master pro game at a arcade on my last dollar but the demand for a GoPro used to be huge

hello @brian.rrr are you the same person in weku. hehehe we can meet again in steemit .. i am very proud of your post which is always nice to see

I haven't had much luck with stocks since the housing bubble recovery. If you had cash on hand in 2009, investing was easy. Everything that didn't turn to poop turned to gold.

This correction doesn't feel like 2009, does it?

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I bought this stock a few years ago back when it made it's IPO appearance but I quickly got out before it declined. Perhaps I will buy in a few at a time over the next year.

It really is a very good idea to buy cheap stocks @brian.rrr after the retracements.

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Thanks for sharing this great explanation about the stock market.Your explanation always helps the others.Really valuable post.Thanks for sharing.

Quite a bit of damage done to stock markets globally over the past few weeks. I'm very much on the defensive at the momen and focusing on shorts, albeit my time frame is much shorter than yours I expect. Keep an eye on my blog if you want a view on price action from the perspective of technical analysis. Thanks.