Is the current stock market selloff a buying opportunity?

What to consider:

    • Probability of Recession remains low
    • US Corporate Earnings and Revenue Growth expanding
    • S&P 500 Market 2018 PE at 19.5 times, only marginally higher than 17 times long term average
    • US yield curve steepening
    • US Corporate bond spreads over Treasuries remain low

Conclusion:

  • Ensure that you are well diversified by: Asset Mix, Currency, Equity Sectors
  • Always maintain a cash reserve to minimize volatility
  • Gradually use market declines to buy quality companies that have solid earnings, cash flow, dividend and revenue growth
  • Do not be tempted to buy bitcoin and pot stocks despite their price declines
  • Buy equity sectors like banks and insurance companies that benefit from rising interest rates.
  • Take your time investing your cash surplus. You will have plenty of opportunity to look at the fundamentals of companies. Do not just look at the companies’ share price.

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