Stocks have hit new lows as expected.

This is especially true of financial stocks with shareholders becoming increasingly uncomfortable with the pulverization of their stocks. Many of these companies have been massive blue chips with consistent dividend growth - this has all changed now as market cap and dividends have been cut.  Investors are acting like a long-tailed cat in a room full of rocking chairs!

Although many really smart advisors preach ‘wait until a consistent upswing before getting back into the market, I have been buying several of these forlorn financial stocks recently.   So what if they drop more, I will just buy more although averaging down is not a wise strategy for everyone.  I like having my money working and I love getting the dividends deposited every quarter.  Many of these truly are too big to fail and function as diverse and dynamic businesses caught in a really bad storm.  I currently own BAC, UBS, C and am looking at GS. The news and stats are available to anyone to contemplate.

Am I too early?  Again, my holding period is upwards of 25 years and I believe this period of time in the market represents a ‘once per generation’ opportunity to  buy these legacy financial stocks.

I just love this quote from Warren Buffett when he was a young man lecturing at Columbia University;

“I will tell you how to become rich. Close the doors. Be fearful when other are greedy. Be greedy when others are fearful”

We are just now starting to reach the point of fear among stock investors.

Good Luck.

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