Bill Spetrino, editor of “The Dividend Machine” and member of the Moneynews Financial Brain Trust, shares his take on the recent stock market crash.
Spetrino starts by boasting about the performance of stocks he has chosen and then moves on to subtly market the magazine he edits, but he does raise some very interesting points later in his article:
“In fact this is the best time to invest in the “right” stocks. Want some proof? The greatest investor ever, the $200 billion man Warren Buffett, recently said that on Aug. 8 he bought the most stocks in one day than he had all year. That was the day the S&P 500 was at its lowest. Sir John Templeton also said the best time to invest is at ‘maximum pessimism.’”
Stocks have been shown to perform historically well, even during times of trouble, and Spetrino explains why this happens:
“For me, it’s relatively simple. The last time the S&P dropped over 10 percent in a quarter was first quarter of 2009 when many felt the world was going to end. In fact, the next two quarters were up over 15 percent and the two after that were up over 4 percent each.”
The full article, “Don’t Let Fear Distract You From the Facts,” can be read here.