The market is pretty much in chaos. The Dow is down, Nasdaq is down, big names like Apple and Google are barely moving. So what do you do in a market like this? You wait. You either sell what you can and stay in cash, or if you are fully invested like I am, you simply wait.
My trades are usually over a 6-18 month timeline but there are a couple stocks I own that are longer term than that simply because I like the companies and I think their potential hasn’t peaked yet. If you trade shorter term then you want to be in cash. The great thing about being in a cash position is you can take your time and decide when to pull the trigger on that stock you really like.
One other thing I typically do in these kinds of markets is look for dividend paying stocks. Dividends can boost your overall portfolio growth and reinvesting those dividends can grow those good stocks faster than they otherwise might.
Now is a good time to be in defensive stocks like Lockheed Martin and Coca Cola or Proctor & Gamble. You want stable large cap stocks or cash. Cash as they say, is King.
