Original article published: 1/18/2016
If you follow the financial markets ($SPY, $IWM, $QQQ, $DIA) like I do, you’re probably going through a period of extreme anxiousness about ALL the money you are losing or all the money you can possibly lose in the near future. No seriously, I cannot go more than a day without hearing something negative about the overall markets, the price of oil and the state of our stock market! Make no mistake; it’s not just confined to financial geeks, its hit Main Street. My close friends and relatives have talked about ditching their 401ks for the “better” option of sitting on cash until the market comes back.
All this talk about the possibility of the worse bear market in history and the impending doom got me to do some serious thinking. What conclusions did I draw?
If the leaders are teachers of anything then it’s fitting to quote billionaire investor, the Oracle of Omaha, Warren Buffett. What did he say? He said, “be fearful when others are greedy and greedy when others are fearful”. If we are to take him at his word, then we should all be buying hand over fist at this point because it seems as though a lot of folks are fearful of having their monies in the market.
I am in no way calling a bottom in this market, no one can but what I do know is the best opportunities arise during these bad times. I’ll prove it!
Don’t you wish you had bought all you could of good quality stocks back in 2009 during the housing crisis? The market would have provided you more than 200% return on your money if you did.
To put that into perspective, a $5000 investment would be worth more than $15,000!!
I don’t know about you but when the dust settles; I will visit the high-end sales rack and stock up because when the bulls come back- they always do - my account will be charging right along with them.
Let’s be clear, I wouldn’t necessarily call myself a value investor but I know when to invoke my inner Oracle.
Find below a list of great dividend paying stocks that are currently 10-20% off their highs that can provide good returns when the market reverses.
Divided paying stocks 10-20% off their highs (please note this list was published over 2 years ago, but you get the point).
U.S. Bancorp (USB)
Phillips 66 (PSX)
Wells Fargo & Co (WFC)
Kraft Heinz Co (KHC)
Procter & Gamble Co (PG)
General Motors Company (GM)
AT&T Inc (T)