"Be Greedy When Others Are Fearful": 2 Growth Stocks to Buy Now in a Bear Market
The CNN Fear & Greed Index currently signals fear, suggesting investors are quite pessimistic about the outlook for the stock market. There are plenty of reasons for them to be worried, as high inflation and rising interest rates threaten to tip the U.S. economy into a recession. Those concerns sent the S&P 500 and the Nasdaq Composite tumbling into bear market territory, erasing more than $9 trillion in wealth in the process.
To be clear, investors often overreact -- both to bad news and to good. That insight led Warren Buffett to share this investing tip: "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful." He wrote those words more than a decade ago as the stock market was descending into chaos during the Great Recession. Investors who followed Buffett's advice and bought during the more fear-dominated parts of that period likely did quite well in the years that followed.
Buffett's advice is just as relevant today. Fears about the direction of the economy drove the stock market down sharply, but that has left many high-quality stocks trading at discounted valuations. For patient long-term investors, this situation represents a buying opportunity. Two growth stocks -- Roku (NASDAQ: ROKU) and Cloudflare (NYSE: NET) -- look like particularly good bargains in this bear market.
Source Fool.com
