I don’t really feel the need to invest more into those, but I’m really focused on dollar-cost averaging more into stocks with high valuations in particular.
Danny Vena: One of the things that I think is hardest for us as investors to do is when the market is behaving, or should I say misbehaving, like it is now with broad sectors of the market just plummeting. It’s really hard to pull the trigger and say, “Okay, I’m going to buy this stock.”
Even though it was a stock that I had a really high conviction in three months ago and nothing company-specific has changed, it’s really hard to actually say, “Okay, well, now that this stock is down 50% from where it was several months ago, I’m going to buy it now.” Because fear is a wicked taskmaster, and so it’s difficult.
But I would say, now is the perfect time. If you have cash to deploy, if you have your emergency fund set aside, if you have all of your bills paid and you have money set aside that you can sink into the market, I think now is an opportune time because we’re seeing so many stocks down.
We know that in many cases, it’s not the company itself or something the company is doing that’s causing the decline in the stock price.
It has to do with either valuations that are adjusting based on the environment or they’re just following the broader market lower. I think these are really good opportunities. Make sure you do this with money that you don’t need for three to five years. But I think there are opportunities out there.
