During the past few weeks, much of the gains for 2014 have evaporated. Both the S&P 500 and the Dow Jones Industrial Average are down more than 3% since July 25. And while the S&P is still showing a gain for the year so far, the Dow is now in the red for 2014.
As should be no surprise, the biggest impact has been on smaller stocks, which tend to be riskier. Naturally, many IPOs have taken hits, too. But a pullback in a stock often leads to one question: Should investors just stay away, or are they looking at a good buying opportunity thanks to lower prices?
For some of these new stocks, I think we’re seeing the latter. The fact is that there are plenty of innovative companies that are attacking huge market opportunities. In other words, this should be a good time for long-term investors.
So, what are the best new stocks to buy on the dip? Here are four that look interesting: