Here's the No. 1 Reason to Buy Stocks During a Sell-Off
Earlier this year, the S 500 roared to a record, confirming that a bull market had indeed arrived. From there, the index went on to reach new records over and over again, and investors piled into growth stocks. But the start of the second half of the year hasn't been so bright. The benchmark posted its worst July in a decade and tumbled further earlier this week as part of a global market sell-off.
The S 500, the Dow Jones Industrial Average and the Nasdaq joined indexes around the world in this movement on Aug. 5. And some of the stocks that have led this year's gains -- such as Super Micro Computer, Nvidia, and Amazon -- started to lead the losses. What caused such a movement? Investors' concern mounted on the lack of interest rate cuts so far and a disappointing jobs report last week -- and in times of economic weakness, growth players could suffer the most.
It's too early to say if this sell-off will be brief or longer lasting, but in either case, there is a case for going against the flow and buying stocks during a sell-off. In fact, here's the No. 1 reason why you should consider buying stocks during such a tumultuous time...
Source Fool.com