Op-Ed: Don't try to 'call a bottom' for the whole market, instead pick stocks for the long term

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'Pick your companies carefully as you re-enter the market,' Michael Farr says.

Stocks have plummeted around the world since the coronavirus pandemic spread outside of China.

Ask yourself if you're willing to buy your favorite stock at its current price today? No? Well would you buy it for $1? Yes? Then we know that you are a buyer at a price between today's price and $1. Currently, amidst a pandemic that is causing wide cancellations of travel and public events of all kinds, the near term numbers are imprecise to the point of being little more than a good hunch. Will air travel resume to Europe next month? Will the U.S. go on lockdown? Without answers to those questions earnings estimates will remain unclear.

Determine your time horizon — if you need cash in 2021, you are not a long term investor. If your time horizon is five to ten years, and if the valuation falls in a range where your discipline says it is a buy, then buy — don't worry if it was cheaper last week, or will be cheaper next week. It often takes time for strong fundamentals to prevail.

 

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Or index funds

Uh and catch the falling knife? Pick stocks for the long term when the price is at a bottom, not when the price is continuing to go down.

Tell that to the people that bought Bear Stearns and Lehman stock

Lol this is terrible advice. One way ticket to losing money.

CNBC is nuts! There is no dip in this market, this is a bottomless pit which is going to 4 digit index for the DOW very soon! Exit and invest in hard assets.

Short speculators will continue to buy dips. Don't hate the player, hate the game.

The one thing stock market never leaves and that is the hope and that surely is helpful for your heart too...

Buy buy buy! Instead of sell, sell, sell. Monday is going to be a bloooooood bath! bloodymonday

What do you do if you have a restricting 401k account limiting buys to funds only?

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