Today the Averages were all down roughly one percentage point. Scary, huh? Not really. Remember when Governor Bush was playing President of the United States and had a great deal to do with the financial crisis of 2008 due to unfettered deregulation of these institutions? If you do or you do not remember is inconsequential because the main point is the American economy got through that mess and will most likely get thru this. Use WWE as your gauge, if that company can make profit with scripted fighting than our economy is fine, so let me show you how to cherry pick stocks for long term investing. I will use today’s decline to show.
So when a market is down not on facts but on fear that creates great buying opportunities. A market down on actual facts is a different story, such as let’s say gasoline went to $12 a gallon or the unemployment rate was 30%. Or, hell, a nuclear bomb was dropped, I obviously don’t recommend buying anything. But this isn’t what happened. It’s the same old story in this country, the Pro-Life party due to is corruptness loosened the regulations that were in place after the financial crisis of 2008 and now Corporate Democrats need to fix it. So with that stated let’s look at some companies that did well in today’s down market.
Take-Two Interactive Software (TTWO) was up today $0.73 (+0.63%). Now if this economy was going over a cliff why would investors be buying this stock or any stock. Simply because this crisis is short lived and people suck. People are taking advantage of this situation, in the same manner that the board of directors of Energy companies are taking advantage of the Russian invasion of Ukraine by selling oil at a high mark up and gouging the American public at retail, and positioning their wealth. Always pay attention to stocks that go green in a down market and ask yourself why. Now why was TTWO up today?
TTWO is highly profitable and is in one of the few industries that is always growing year over year. The video game industry, This goes back to an lesson that is tried and true. Invest in what you know. There was a rumor on social media that Sony may acquire them when Microsoft gets thru regulators in it’s acquisition of Activision. Also pay attention to the volume of the stock. Simply put how many shares were traded for that day and compare that to it’s ten day average. In this case it traded over one million shares more (+150%). What does this mean? Typically this means the big guns came in buying, and by big guns I mean the wealthy, the institutions that purchase for funds. Remember a stock going up simply means more buyers and sellers. And when there are more buyers of a stock than selling it when in general the sellers have taken over this should always pique your interest.
The one mistake most people make when investing is that they don’t have patience. The plebeians that invest dream that there one thousand or five thousand investment will magically turn into a million dollars. You might as well play the State Lottery and keep your fingers crossed. Then after a few years and a bear market they usually sell and dream of what could have been, or they invest in something else on a tip that they heard from a friend at the bar or a relative at a BBQ and the cycle starts over again. The stock market is meant to help you grow wealth, and growing wealth takes time. You invest a certain amount every year, then do it again the following year and so on. And depending on what you pick that stock may pay a dividend and you could either reinvest that dividend, the sagacious choice, or keep the cash and buy yourself a gift. I have done both, the choice is up to you. So now let’s look at a tortoise of a stock.
Sirius XM Holdings INC. (SIRI) was up today as well. Up $0.03 (+0.83%) Why was it up today? Maybe because it has unfairly been sold off down to a market capitalization of $14 billion dollars? The question mark is sarcastic. This company continuously reports quarterly profits and is paying a dividend. At $3.64 a share you can lock in an annualized dividend of 2.66%. I recently added it to my ROTH IRA at $3.69 and reinvesting the dividend to get more shares. And by unfairly sold, this stock during the Covid crisis went as low as $4 and came back to $7 a share I believe. The point is you are getting prices that were lower than the Covid crisis that rattled the markets. And yes they do have debt, but their debt isn’t out of control because if it was then why were people buying this stock on a down day?
And last but not least an easy long term company that was also up today, Verizon (VZ). Up $0.21 (+.57). They have a lot of debt but they also make a lot of profit and at this price $36.79 their annualized dividend is 7.09%. This one is easy, a no brainer. 7%!!!!
All three of these companies were up today in a sky is falling market. And for each the volume for today was higher than its 10 day average. VZ was 207% higher and SIRI was 165%. Look for these characteristics in a down market and buy. But first ask why? Why is it up? Do your research to confirm your suspicions. And buy.