From the breathless reporting in the financial media, you’d think the world was coming to an end just because the market has actually been correcting this month.
In truth, I can’t find any consensus among the economists, hedge fund managers, wealth managers and CEOs that I regularly speak with regarding the market. You’d think that if the Fed starts to taper, that would mean rates would rise and folks would rush out of stocks and back into bonds to find yields.
Maybe. Or maybe not.
That’s why I advise having a long-term diversified portfolio, with portions set aside for options, swing trades and stocks to buy in case of a crash. I have my own shopping list for such stocks to buy, and I’ve written about them over the past two years, demurring on purchases because they are overvalued.
In a market crash, however, you might get a chance to buy in. Here’s what I’d want to grab if it went on sale.