For the first quarter of this year, some of the major stock market benchmarks have been tumbling, with some of the worst quarterly losses in two years.This uncertainty in the stock market was worsened by the ongoing tragedy that is Russia's invasion of Ukraine which may adversely affect the European economy and consumer spending and business investment in the US.
He found out that from 1993 to 2017, there were a total of 6,411 trading days, and the Straits Times Index more than doubled without dividends. However, if we are net buyers of stocks, we should rejoice when stock prices fall and come to a valuation that we are comfortable with to buy.The volatility in the stock market can throw up many investing opportunities.
So, the trick here is to be patient and not swing your bat at every pitch, but to wait for the perfect pitch. My friends from The Fifth Person have written a great piece on the topic of choosing strong businesses, and I use a similar framework to pick quality stocks as well.High gross and net profit margins;Strong companies with the characteristics listed above may also take a hit during a downturn, but they usually bounce back quickly when things clear up.