Volume 9 Issue 2008

If you’re looking for a good buy on investments, you may have to look no further than a stock market decline. When market values tumble, investments on your wish list may be available at bargain prices. While a drop in stock values might not be great news, it does offer an opportunity to add investments to your portfolio that were previously priced too high for you to consider buying.

Think about the following factors before you begin “bargain hunting.”

It’s Only a Bargain If.

Make sure the investment fits your asset allocation strategy and objectives. No matter how “cheap” it is, an investment is of value only if it has positive future prospects and furthers your goals.

There’s Strength in Numbers.

Don’t make a new investment until you and your financial professional have assessed the company’s financial position, management, and outlook for the future. Be certain that the company’s fundamentals are strong and haven’t been significantly or permanently affected by the economic downturn that typically accompanies a market decline. Investing in a company that’s positioned for growth can be a smart move in any economy.

History Generally Repeats Itself.

Upturns and downturns in stock values are normal market patterns. While there are no guarantees, historically, some market corrections have taken only months. By taking advantage of low prices, you’ll be in a position to potentially benefit when stock values begin to rise again.