Posted April 8, 2012 14:25
To be blunt, the jobs report that came out on Friday was abysmal. The report showed stagnated growth and proves that the US economy is still in deep trouble. Over the past few months, mostly everyone has been very optimistic on the economy. But now that the jobs number showed weakness, people may start to move their money from stocks to gold and bonds. Now, many are calling on Chairman Bernanke to put in effect QE3. The thought of QE3 should make gold and silver rise this coming Monday. On the other hand, the stock market seems as though is will be down triple digit points on Monday.
I view the recent downturn in the market as a buying opportunity. Not only have stock prices fallen but they are also cheap again. I am not saying to go “guns blazing” and buy a tremendous amount of equity. But, whenever people begin to get scared and stock prices fall, you, the investor, should have pretty good conviction to pull the trigger and buy some dividend stocks. This strategy is good for a long-term trader, and the reason I say this, is because nobody knows when the stock market correction will come to an end and when the market will start to go back up again. For all we know, the market can have a huge correction. But if the individual investor looks 3-5 years down the road, most likely the market will have delivered substantial gains (along with the dividend yield).