Wall Street's turbulent year has afforded investors plenty of opportunities to buy stocks on a pullback. The question, though: When is the right time to pull the trigger? The answer is nuanced, depending on the circumstances surrounding the stock and one's personal investment goals. However, for us at the Club, there are a few things we keep in mind whenever we're looking to be opportunistic into weakness.
Hypothetically, we may look to buy the pullback in a stock when its yield becomes, say, 3.5%, then wait until it reaches 3.75% or 4% before making an additional buy. More generally, it's important to note that we're not going to keep buying something endlessly just because it's going lower, even if we strongly feel the market is getting it wrong. We're keeping an eye on how big the position is relative to the rest of the portfolio and whether buying more would make it too large.