2 Ways To Take Advantage of the Worst Market in 50 Years
After the worst first half since 1970, stock market investors may be struggling with what to do now. The S&P 500 lost 20.6% in the first six months of 2022, nearly the same as the 21% lost during the first half of 1970. Rather than panic, however, investors can use that to their advantage.
What can happen next? Well, the last half of 1970 saw the market gain 26.7%. While no two time periods are exactly alike, the lessons from past market downturns are as valid as ever. Here's how to take advantage of the current market to boost long-term wealth creation.
One of the benefits of this type of downturn is that stocks of well-known, successful businesses are on sale. Investors don't need to get fancy when searching for opportunities. Consider what you already know works. Take Home Depot (NYSE: HD) as an example. Based on its price-to-earnings (P/E) ratio, Home Depot's stock is trading at a valuation it has only hit once in the past 10 years. This is a company that has doubled its annual revenue over that time.
Source Fool.com
